China Gets 1st Onshore Bond Default as Chaori Doesn’t Pay
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China’s onshore bond market experienced its first default as a solar-cell maker failed to pay full interest on its bonds, signaling the government will back off its practice of bailing out companies with bad debt.
Shanghai Chaori Solar Energy Science & Technology Co. is trying to sell some of its overseas plants to raise money to repay the debt, Vice President Liu Tielong said in an interview yesterday at the company’s Shanghai headquarters. The company said March 4 it would only be able to pay 4 million yuan ($653,000) of an 89.8 million yuan coupon due yesterday.