A Chinese manufacturer of display panels has failed to pay 66 million yuan ($10 million) in interest on two bonds as China’s market-rattling string of corporate defaults continues.
Shenzhen-listed Tunghsu Optoelectronic Technology. Co. Ltd. said that “tight liquidity” means it could not come up with the cash to make interest payments due Tuesday on a 2.2 billion yuan medium-term note and another 800 million yuan note, the company said in a Tuesday filing (link in Chinese).
The company’s failure to make the interest payments is just the latest in a series of bond defaults in China, an issue that has caught the attention of the country’s top economic planner. Recent repayment failures by a coal mining company, a top Chinese chipmaker and a major car manufacturer highlight the risk of rising defaults in the country’s corporate bond market.
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