China's Bond Market Watches as Another Firm Fails to Repay a Debt

(Beijing) – Investors who thought government-backed securities were a safe bet have been burned again, as a large firm in Inner Mongolia has failed to repay its bond debt despite local government's pledge to help out.

Inner Mongolia Nailun Group Inc., a private agricultural conglomerate that is also involved in real estate development, announced on May 4 it did not have enough cash to make an 807 million yuan bond repayment due the next day.