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.

Trending in China: Can Music Streamers Help Users’ Depression?
Core Parts of China’s Beidou Satellite System ‘100% Made in China’
Trending in China: Xiaomi CEO’s Shows How Best To Harness China’s Social Media Humor for Serious Business
Apple Takes Down Over 30,000 Apps from China Store Amid Government Crackdown
Chinese Chipmaker SMIC to Establish Joint Venture for Wafer Production
Microsoft Said Plan to Acquire TikTok Will Continue
Uber Abandons Plan to Move Regional Headquarters to Hong Kong
Trending in China: Undergraduate Degree in Housekeeping — Valuable Asset or Waste of Resources?
Huawei and Apple Shine in China’s Smartphone Market During Second Quarter
Video Streamer iQiyi Eyeing Southeast Asian, Middle East Expansion, Executive Says
Lawson Expands in China With Prefab Convenience Stores
TikTok Undergoing U.S. Investment Review, Treasury Secretary Says
Chinese Community E-commerce Firm Nice Tuan Nets $80 Million in Third Funding in 2020
Trending in China: Shanghai Film Festival Rekindles Childhood Memories with Outdoor Screenings
China’s EHang Gets Green Light to Test Self-Flying Vehicles in Quebec
Trending in China: Pop Star Jay Chou’s Livestream Signals Kuaishou’s Increasing Partnership with Celebrities
Tencent to Pick Up Stake in Shanghai-listed Weaver Network for $110 Million
U.S. Senators Worry TikTok Could Be Used to Interfere in Elections
Tesla Launches Hiring Spree in China as It Prepares for Shanghai Production of Model Y
ByteDance AI Lab Head to Leave as TikTok Faces Global Headwinds
China Sees Another Potential Bond Default by Local Government Financing Vehicle

By Liang Hong and Tang Ziyi / Dec 09, 2019 02:33 PM / Finance

Photo: VCG

Photo: VCG

A state-owned infrastructure company in the northern Chinese city of Hohhot has failed to repay interest on a 1 billion yuan ($142.1 million) bond, Caixin has learned, marking another potential default by a Chinese local government financing vehicle (LGFV).

The bond issuer, Hohhot Economic and Technological Development Zone Investment Development Group Co. Ltd., which is wholly owned by the financial and audit bureau of the city’s special economic zone, failed to repay interest on the bond on Friday, according to a document obtained by Caixin released by the Shanghai Clearing House to bond investors on the same day. Hohhot is the capital city of the Inner Mongolia autonomous region.

The missed payment comes as a surprise to investors who invested in bonds issued by LGFVs as they were seen as a safe option with government-guaranteed payments. 

If the Hohhot LGFV fails to make the interest payment within the 10-day grace period, it will cause a default, according to the 2016 bond issuance prospectus seen by Caixin.

Inner Mongolia is a less developed inland regions where local governments in recent years have been struggling to replenish their coffers amid the ongoing economic slowdown.

This story has been corrected to state that the company has yet to default because the bond payment has a grace period.

Read the full story later today on Caixin Global.

Contact reporter Tang Ziyi (

Related: Surprise Default in Xinjiang Raises New Debt Fears

Share this article
Open WeChat and scan the QR code