Another SOE defaults as hidden risks come to light in China
SHANGHAI - The Chinese media group Caixin is reporting that debt risks continue to cloud the Chinese corporate
bond market this week, with another major state-owned enterprise defaulteingon a trust loan. This follows the
default of a state-owned coal-mining firm earlier this month.
On Wednesday last week, Minmetals International Trust Co. Ltd. said that a wholly-owned logistics subsidiary of Jizhong Energy Group Co. Ltd., which is owned by the Hebei provincial government, had failed to repay principal and interest of a RMB 500 million (USS 76 million) trust loan due Monday.
The borrower later repaid the debt on Thursday, according to a statement released by the trust company.