A state-owned aluminum producer said it has made last-minute payments on 20 million yuan ($3 million) in debts that were due Monday, averting a default that has sparked fresh concerns over the financial health of China’s corporate sector.
Qinghai Provincial Investment Group Co. Ltd. said Tuesday morning in a statement that it has made full repayments on principle and interests of the one-year private placement note totaling 21.4 million yuan to the Shanghai Clearing House by 7:00 p.m. Monday. The delayed payment, which was due at 5:00 p.m., was due to technical reasons, the company said in the statement.
Caixin learned that investors received their payments from Qinghai Provincial Investment by 10:00 a.m. Tuesday.
The Qinghai company’s late payment is the latest “technical default” by a state enterprise amid a wave of defaults of corporate bonds that have fueled worries about Chinese companies' financial standings.
Qinghai Provincial Investment missed an interest payment Friday on $300 million of offshore U.S. dollar-denominated bonds, the first such default in more than 20 years.
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