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Sinosteel's Not-Default and More Moral Hazard: Katrina Nicholas

Sinosteel Co. looks set to avoid recording the first default by a Chinese steel company and a central state-owned enterprise. Good news for bondholders; not so good for the development of the nation’s debt market.

The company provided additional collateral for its 2017 yuan notes and extended their redemption by one month until mid-November. Sinosteel is said to be in discussions with the National Development and Reform Commission, which also is planning to meet with investors in the company’s securities.