world is news

China bond market regulator to analyze state-owned coal agency after default

Spread the news

China’s interbank bond market regulator mentioned on Thursday it’s launching an investigation into Yongcheng Coal & Electricity Holding Group Co Ltd after the state-owned agency defaulted on a bond fee.

The National Association of Financial Market Institutional Investors (NAFMII) mentioned in an announcement that it might launch a “self-disciplinary” investigation into Yongcheng, a state-owned mine operator from the central province of Henan, after the corporate defaulted lower than a month after issuing a brand new bond.

Yongcheng mentioned on Nov. 10 that it was unable to make principal and curiosity funds on 1 billion yuan of short-term industrial paper maturing that day. Just three weeks earlier, the corporate issued a three-year 1 billion yuan ($150.97 million) medium-term observe on Oct. 20.

NAFMII mentioned the investigation would look into whether or not Yongcheng and middleman corporations had correctly disclosed dangers, and will impose sanctions or refer the businesses to “relevant departments” if they’re discovered to have violated guidelines.

The NAFMII assertion comes amid rising concern over debt dangers related to Chinese state-owned companies following a string of defaults.

Also on Thursday, the Shanghai Stock Exchange briefly halted commerce in a state-owned agency backed by an elite Chinese college after a ranking company’s debt warning sparked a selloff.

Spread the news