Chaori bond

Chinese default landmark looms

Chaori Solar said it would not make a March 7 interest payment, signalling China's first default. Some are calling it the country's Bear Stearns moment.

China is finally set for its first-ever bond default after a spate of recent near-misses. Now begins the start of the market's long-overdue reassessment of the country's credit risks.

Shanghai Chaori Solar Energy Science and Technology said late Tuesday that could not pay all of the Rmb89.8 million $14.5 million interest due March 7 on the Rmb1 billion 5-year bond it issued in 2011 and listed in Shenzhen.

Chaori said it was only able to pay Rmb4 million, potentially signalling a default - China's first onshore bond default.

To an extent, this landmark credit event has been coming.

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¬ Haymarket Media Limited. All rights reserved.

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