Awaiting China's next great bank asset sale

A bond default by coal firm Hidili underlines the growing pressures facing many Chinese companies, which could yet spur the country's banks into asset sales and securitisations.

Awaiting China's next great bank asset sale

Halloween, on October 31, is traditionally the day for spooky behaviour. China’s bond market received its own scare a day earlier.

On October 30, mainland coal company Hidili Industry International Development said it would not be able to repay its outstanding US dollar bond issue after defaulting on Rmb6 billion $947 million of local loans.

The unwelcome news put the frighteners on international investors who hold the bonds. And it came just...

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