A Short History of Chinese Bond Defaults
It really is very short.
One other troubled bond from Baoding Tianwei Group.
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With rumblings of a potential troubles at SinoSteel, the state-owned Chinese steelmaker, savvy investors might find it worth asking about previous defaults in the country’s corporate bond market. Analysts at Bank of America Merrill Lynch have the answer: There haven't been many.
That's a key point to make as China's ball of excess money comes rolling out of its volatile stock market and into the corporate debt market instead. And, with a slowdown in the country's stratospheric GDP growth now firmly in the offing, there's the potential here for a massive underpricing of risk as yield-hungry investors combine with increasingly shaky economic ground.