meanwhile...chances of chinese credit crunch?, page-25

Threat of China corporate bond default vexes market

Not a first rank financial company but still the credibility of all bonds issued must be questioned
Is it a sign of a healthy system, ie if nothing fails it's because they are not trying hard enough to expand or a thin edge of the wedge to a troubled system

A Chinese solar company is threatening not to pay interest on a corporate bond, setting off alarms in the financial system,
The news came after worries earlier this year over financial products issued by China’s roughly 65 trusts, which have drawn comparisons to American “junk bonds” of the 1980s.

In one case a US$160 million investment product structured by Jilin Province Trust and backed by a coal firm failed to repay capital and interest five times by the middle of last month.

Separately, a US$500 million investment product that was structured by China Credit Trust Co (????) avoided default after an unknown party made good on principal payments
Chinese stocks fell the most in a week amid concern the country faces its first onshore corporate bond default this week,

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