China State promises, hmmm ought to rethink that.
next up 'repo' 'crisis', yeah theres' that.
China's "Moment Of Reckoning" Arrives: $38BN State-Owned Giant Announces Largest Dollar Bond Default In Two Decades
Excerpt:
Last Wednesday, Tewoo Group announced results of its "unprecedented" debt restructuring, which saw a majority of its investors accepting heavy losses, and which according to rating agencies qualifies as an event of default. As a result of the default, until recently seen as virtually impossible for a state-owned company, investors’ perceptions are undergoing a dramatic U-turn about government-owned borrowers whose state-ownership had for years offered an ironclad sense of security.
No more: The fact that a state-owned enterprise such as Tewoo has now defaulted on repaying its dollar bonds in full, confirms that Beijing will no longer bail out troubled SOEs, let alone private firms, perhaps due to the strains imposed by the economy which while growing at just below 6%, is slowing the most in three decades. It also raises concerns over the Chinese province of Tianjin, where Tewoo is based, following a series of rating downgrades and financing difficulties suffered by some of the city’s state-run firms. The metropolis near Beijing also has the highest ratio of local government financing vehicle bonds to GDP in China.
https://www.zerohedge.com/markets/chinas-moment-reckoning-arrives-38bn-state-owned-giant-announces-largest-dollar-bond