China 

China’s unsustainable debt levels may trigger large-scale corporate defaults, OECD warns

Risks of large-scale corporate defaults are mounting in China, despite economic growth that “remains robust by international standards”, according to a new report.The Paris-based Organisation for Economic Cooperation and Development (OECD) found that sagging domestic demand and weak export orders have led Chinese authorities to swiftly resort to stimulus measures, through expansionary monetary policy, tax cuts and infrastructure spending.The OECD is an influential intergovernmental economic… Source link

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Singapore 

Football: Fulham player Ben Davis defaults on national service commitments, Singapore News

SINGAPORE – Footballer Ben Davis has defaulted on his national service commitments, the Ministry of Defence (Mindef) said in a statement on Monday (Feb 18). In response to queries from The Straits Times, Mindef said: “Mr Benjamin Davis is a NS defaulter. He failed to report for NS as required. He is also staying overseas without a valid Exit Permit. “Mr Davis has committed offences under the Enlistment Act, and is liable upon conviction to a fine of up to $10,000 and/or imprisonment of up to 3 years.” ST understands…

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Home 

US$369.6 million in defaults at apparently cash-rich firms expose flaws in mainland Chinese auditing practices

Three mainland Chinese companies have missed a combined 2.5 billion yuan (US$369.6 million) in debt repayments over the past two months despite apparently high cash holdings, a development that has exposed deep flaws in the auditing and financial disclosure practices in the country. Kangde Xin Composite Material Group, a Shenzhen-listed new material producer, failed to pay a 1 billion yuan local note due on January 15 because of a liquidity crunch, according to the company. Yet, as of September end, it had 15.4 billion yuan in cash and equivalents, more…

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Home 

Hong Kong’s Hsin Chong defaults on US$150 million senior debt

Hsin Chong Group, a major construction company in Hong Kong, has defaulted on its US$150 million senior notes, according to an exchange filing. The senior notes, carrying a fixed annual rate of 8.5 per cent, fell due for redemption on January 22. “The company has not paid the amounts outstanding under the 2019 notes to the account of the trustee of the 2019 notes,” Hsin Chong said in the filing on Tuesday night. The company has met with certain holders of the notes and their advisers to discuss a potential…

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Investment 

Chinese solar farm operator seeks to resolve bond defaults as end of subsidies casts shadow over industry

China Singyes Solar Technologies Holdings, once the mainland’s leading solar developer, is seeking to resolve bond repayments worth 967 million yuan (US$142 million) it had defaulted on in October. The Hong Kong-listed company, focusing on operating solar farms and building solar curtain walls, had defaulted on 202 million yuan of offshore loans and 765 million yuan of onshores loans at the end of October, it said in a stock exchange filing on Thursday. Chinese solar power stocks plunge as government moves to contain industry size Singyes Solar said it has…

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China 

China bond defaults tripled in 2018 – the case of one property developer shows why

The year 2018 witnessed an unprecedented wave of corporate bond defaults in China, as the world’s second biggest economy lost steam amid a trade war with the United States. The expectation that the economy will slow further, combined with the government’s continued efforts to rein in debt and risky lending, suggest the number of defaults is likely to increase further next year. The number of corporate bond default cases surged to 119 in 2018, or more than triple the 35 cases in 2017, while the value of defaulted bonds also…

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