Two Major China Firms Just Missed $526 MILLION In Bond Payments

Two Chinese companies failed to repay bonds worth a combined half a billion dollars on Monday, underscoring rising debt risks in the highly leveraged nation as the economy slows.

Peking University Founder Group was unable to secure sufficient funding to repay a 270-day, 2 billion yuan ($285 million) bond, according to a company filing to the National Interbank Funding Center. Tunghsu Optoelectronic Technology Co. failed to deliver repayment on both interest and principal on a 1.7 billion yuan bond, according to Shanghai Clearing House.

The quickening speed of bond defaults in China, especially among ailing private firms, highlights the growing financial strain triggered by the country’s worst economic slowdown in three decades and unabated trade tensions with the U.S. Last week, industrial firm Xiwang Group failed to pay a 1 billion yuan bond, missing a fresh repayment deadline on an already defaulted bond.

That “worst economic slowdown in three decades” is no accident. Rather, it’s the direct result of President Trump’s trade war policies which have had a negligible impact on the U.S. economy while pushing China to the brink of economic disaster. In short, the president has clearly been right all along – China needs us far more than we need them.

dcwhispers.com/breaking-two-major-china-firms-just-missed-526-million-in-bond-payments/