HITIC default may signal a restructuring, say optimists

Hainan International Trust & Investment Corp (HITIC) raised few eyebrows when it failed to pay the $6.9 million interest due on its Y14.5 billion ($135 million) 2001 Samurai bonds within a 14-day grace period. That was extended after it missed an original payment date of 26 June. This was despite assurances from Jin Liqun, vice-minister at the Chinese Ministry of Finance, that HITIC - the investment arm of the Hainan provincial government - would come up with the money. Liqun said the default resulted from a technical problem.