Friday, 13 Nov 2020 06:58 PM MYT
A Chinese miner that defaulted this week meanwhile cancelled today’s investor meeting for fear it would turn chaotic after too many creditors showed up. The nervousness also spilled into the stock market, where Chinese banking shares fell today over concerns they would face increased bad loans. Creditors are keen to get their money back, after the coal miner on November 10 said it failed to make principal and interest payments on 1 billion yuan in commercial paper.The fresh default comes on the heels of debt woes at Chinese property developer Evergrande, which is Asia's largest junk bond issuer, and a default by Huachen Automotive Group, the state-backed parent of BMW's Chinese venture partner.
Huachen's bond prices tumbled to around 10 yuan, a tenth of face value, on Thursday. Unigroup's bond prices slumped and the Shanghai Stock Exchange paused trading in some of the company's debt, while shares of its listed unit dropped 10 per cent today.