bloomberg: " Shanghai Chaori Solar Energy Science & Technology Co. (002506) said it won’t be able to fully pay a coupon due today on its March 2017 bonds"
It's not an 'if' but a 'when' and 'what will the government do' when these companies unravel. Debt /equity ratios of ~200% are common and some are at 400%.
A vast largely inefficient financial corporate system with poor accounting practices and excessive government involvement, the recipients of unqualified loans or heavy borrowings from the shadow banking sector, a slowing economy with a rising cost base...
etc etc
Which companies are allowed to live and which to dissolve, so many choices, so much debt and so little time.
The Chinese corporate ship is springing leaks. Let it sink, plug the holes or build a new boat.
