Default Hits Another Chinese Builder That Sold State-Backed Debt

(Bloomberg) — A Chinese developer that sold a state-guaranteed onshore note in January defaulted on its dollar bonds, raising doubts about the efficiency of state help for the troubled real estate sector.

KWG Group Holdings Ltd. — which builds high-rise apartments, office buildings and shopping malls primarily in China’s larger cites — said it didn’t pay $119 million of principal due Sunday on a note. A default also occurred under the company’s eight other dollar bonds, according to an exchange filing.