Caixin Global – Latest China News & Headlines

Home >


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

Qinghai SOE Made Late Payments After Default Fears

By Han Wei / Feb 26, 2019 05:23 PM / Business & Tech

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.

Related: China Logs First Dollar-Bond Default by Major State Firm in Two Decades

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

Share this article
Open WeChat and scan the QR code