Guarantor Reassures Nervous Bond Investors Over Multimillion-Yuan Default

(Beijing) — A guarantor has told investors not to worry about millions of yuan worth of bonds now in default that were sold through an online wealth management platform linked to Alibaba Group's Jack Ma.

Two telecom product-making subsidiaries of Cosun Group, a Guangdong-based electronics manufacturer, recently defaulted on bond principal and interest worth a combined 312 million yuan ($44.9 million), according to a notice sent to investors Tuesday. Both subsidiaries blamed a cash crunch.