Caixin
Caixin Global – Latest China News & Headlines

Home >

ABOUT US

CX Live is Caixin Global's real-time news portal, featuring 24-hour breaking news, short-form analysis, and roundups from business and social media in China.

TRENDING
Beijing’s New Airport Invites Fierce Competition for Seoul and Paris Routes
China Welcomes International Institutions to Take Part in Belt and Road
Fosun Chairman Tells Jack Ma He’s Been ‘Thinking About Succession’
LATEST
Baidu and ByteDance Launch Tit-for-Tat Lawsuit War
Services Giant Meituan Unveils Multi-Company Ride-Hailing Fleet — But Leaves Didi Out
Star Student Suspected of Killing Mother and Hiding Body for Months Finally Arrested
Leading Chinese Pig Provider Expands Business in Vietnam
Lawsuit Filer Says CEO Offered Her a Job at E-Commerce Giant JD.com Before Alleged Rape
Alibaba, Pinduoduo Wash Up on U.S. Piracy List
Payment Firm Lakala Cheers Investors With Surge in Shenzhen Debut
Chinese Sports Info Platform Prepares to Go Public, Again
Biotech Firm Viva to Raise Up to HK$1.5 Billion in Hong Kong IPO
At Least Three Electric Vehicles Have Spontaneously Exploded in China This Week
Fallen Tech Star LeEco's Listed Arm Braces for Trading Suspension
Central Bank Dismisses Rumors, Says It Will Not Tighten or Loosen Monetary Policy
Yet Another Chinese Coffee Chain Joins the Fundraising Frenzy
Former EV Head Is Being Detained — But No One Knows Where or by Whom
China's Bytedance Gets Reprieve as Indian Court Lifts Ban on TikTok App
Pork Company That Once Offered to Pay Debt With Ham Gets Stock-Market Warning
Huawei Opens Cloud and AI Innovation Lab
Guangdong Public Hospital Probed in Deaths of Newborns
China Welcomes International Institutions to Take Part in Belt and Road
Former Guizhou Governor Gets 20 Years in Prison and $26 Million in Fines for Corruption
Kangde Xin Chairman Steps Down After Bond Default

By Han Wei / Feb 13, 2019 12:30 AM / Finance

Photo: VCG

Photo: VCG

The chairman of a Chinese auto parts supplier that defaulted on 1.55 billion yuan ($230 million) of bonds stepped down Tuesday, sparking fresh fears among creditors that they won’t be able to get their money back.

Zhong Yu, chairman of Shenzhen-listed Kangde Xin Composite Material Group Co. Ltd., resigned for personal reasons, the company said in a statement. Zhong holds the controlling interest in Kangde Xin.

Kangde Xin in January failed to repay principal and interest on 1.55 billion yuan of debt, although the company’s financial report showed it held more than 15 billion yuan in cash and bank deposits just four months ago.

Zhong in late January told creditors that he is willing to provide a personal guarantee for the company’s debts and promised repayments by the end of March.

Kangde Xin, based in the city of Zhangjiagang in the eastern province of Jiangsu, is the latest defaulter in China’s wave of bond defaults. The company has supplied automakers such as BMW and Mercedes-Benz with carbon fiber composite materials, according to its annual reports.

Related: Chinese Bond Defaulter’s Chairman Offers Personal Guarantee

A previous version of this story incorrectly identified Kangde Xin's former chairman. His name is Zhong Yu.

Support independent journalism from China. Subscribe to Caixin Global starting at $0.99.

Share this article
Open WeChat and scan the QR code
Copyright © 2017 Caixin Global Limited. All Rights Reserved.