Qinghai Bond Rollercoaster Month Shows China Local Debt Woes
- Qinghai Provincial notes had both negative, positive records
- Company said it plans to repay securities due later this year
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A Chinese company in a remote area near Tibet has had a dizzying month in the credit market, underscoring broader concerns about debt loads at local borrowers.
Notes from Qinghai Provincial Investment Group Co. due later this year surged by a record on Wednesday after Bloomberg News reported that the firm plans to repay the securities. The bonds had tumbled to record lows just last week after S&P Global Ratings said the company’s short-term debt totals more than six times cash and that it lacks a plan to refinance the notes.