Caixin
Mar 07, 2018 08:30 PM

Shoemaker’s Bond Craters on Buyback Doubts

A Fuguiniao shoe store is seen in Shantou, Guangdong province. By the close of trading on Tuesday, the price of the company's bond, 14 Fuguiniao, had plummeted 91.8% to 8.56 yuan ($1.35), a fraction of its par value of 100 yuan. Photo: VCG
A Fuguiniao shoe store is seen in Shantou, Guangdong province. By the close of trading on Tuesday, the price of the company's bond, 14 Fuguiniao, had plummeted 91.8% to 8.56 yuan ($1.35), a fraction of its par value of 100 yuan. Photo: VCG

*Price of the Fuguiniao bond began sliding after it resumed trading on March 1 after an 18-month suspension

*Bond custodian Guotai Junan Securities had warned in a statement that Fuguiniao has “not had a concrete arrangement for funds needed for the buyback and interest payment”

(Beijing) — The bond of a well-known Chinese shoemaker has plummeted nearly 90% in value over the past week as investors worry that the company won’t honor its buyback commitment.

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