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China Steelmaker Default Sparks Debt Contagion Fear

A Shanghai Steel Yard as Metal Markets Prepare for a New World Disorder
Photographer: Qilai Shen/Bloomberg
Corrected

A Chinese company’s bond default is causing market concern that trouble may spread to other firms in the province.

Shandong-based steelmaker Xiwang Group Co.’s failure to repay 1 billion yuan ($142 million) of bonds last week, saw investors dump neighboring firms’ notes on contagion fears as companies in this province are well known for providing guarantees for each other’s debt.