Untested China bond structure sparks market angst after default

[HONG KONG] China's dollar bond market faces a fresh test after a landmark default by a private sector champion is set to trigger the first drawdown of a letter of credit for a public Asian bond.

A failure or even a delay in payments with such a structure would be a further blow to China's bond market that's reeling from a spate of debt woes afflicting some of the country's big conglomerates. Chinese issuers have about US$7.3 billion of dollar notes outstanding that carry SBLCs, accounting for about 90 per cent of such greenback bonds issued globally, according to Bloomberg-compiled data.

China Construction Bank's media department didn't immediately reply to an email seeking comment. Calls to China Minsheng Investment's financing manager went unanswered.

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

African swine fever has now spread to all parts of China, posing threat to pork industryAfrican swine fever, which is deadly to pigs but not harmful to humans, has now spread to all Chinese mainland provinces since the first case was confirmed in August, posing a serious threat to the hog industry and raising concerns about consumer inflation. The cases in Hainan mean the virus has spread
Source: YahooSG - 🏆 3. / 71 Read more »