Although the latest defaults represent a fraction of China's $13 trillion onshore bond market, some high-profile cases have rattled investors since the common perception has been that the Chinese government will not let state-supported firms fail.
The case of Chinese bad debt manager Huarong has also spooked investors, causing a market rout this year when the firm failed to file its earnings in time and its U.S. dollar-denominated bonds plunged.
Analysts said cases like these signal how the state's so-called implicit guarantee is changing as the government tries to improve the bond market's quality — weeding out the weaker firms, and allowing for some differentiation within the industry.