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.