China LGFV’s Last-Minute Bond Payment Highlights Local Woes
- Kunming Dianchi paid a maturing onshore note Monday night
- Recent China stock declines attributed to local-debt worries
Kunming is the capital of Yunnan province, China.
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A last-minute payment on a bond earlier this week by a local government-owned firm in southwest China is adding to concerns about debt struggles.
Two holders of a 1 billion yuan ($142 million) note from Kunming Dianchi Investment Co. told Bloomberg News that they received payment after business hours on the effective due date Monday. It’s unusual for onshore investors to get funds in the evening, which typically signals difficulty raising cash for debt service. Calls to the company weren’t answered.