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11 Mar 2014
Fears mount on further Chinese bond defaults
FXStreet (Bali) - A growing sense of risk aversion hit the market on Tuesday, as rumours of further Chinese corporate defaults continue to make the rounds.
According to Bloomberg, "Baoding Tianwei Baobian Electric Co.’s bonds and stock were suspended from trading on Tuesday after the Chinese electrical equipment maker said it reported losses for a second year running. The exchange, in line with its rules, will decide in seven trading days whether to continue the trading halt on Tianwei Baobian Electric’s bonds until its losses are reversed."
"Investor scrutiny of China’s onshore bond market is mounting after Shanghai Chaori Solar Energy Science & Technology Co. last week became the first company to default. Chaori Solar’s failure to pay has stoked speculation more companies may miss debt deadlines also" Bloomberg adds.
The Australian Dollar was punished the most on Tuesday as it remains the favourite proxy trade on China for both the best and the worst. As Terry McCrann from the Business Herald in Australian notes, the Australian economy "is now totally hostage to China’s continued growth."
According to Bloomberg, "Baoding Tianwei Baobian Electric Co.’s bonds and stock were suspended from trading on Tuesday after the Chinese electrical equipment maker said it reported losses for a second year running. The exchange, in line with its rules, will decide in seven trading days whether to continue the trading halt on Tianwei Baobian Electric’s bonds until its losses are reversed."
"Investor scrutiny of China’s onshore bond market is mounting after Shanghai Chaori Solar Energy Science & Technology Co. last week became the first company to default. Chaori Solar’s failure to pay has stoked speculation more companies may miss debt deadlines also" Bloomberg adds.
The Australian Dollar was punished the most on Tuesday as it remains the favourite proxy trade on China for both the best and the worst. As Terry McCrann from the Business Herald in Australian notes, the Australian economy "is now totally hostage to China’s continued growth."