In Depth: How Ethylene Glycol Led to the Yongcheng Coal Default
A worker holds a bottle of ethylene glycol made in a factory in Guizhou.
The surprise default that threw China’s corporate bond market into turmoil last month can be traced to massive, unprofitable investments a decade ago in ethylene glycol, a toxic but useful industrial chemical that Chinese factories consume in vast quantities.
The business case seemed sound in 2010 for the state-owned coal mining operations of central China’s Henan province to diversify into the product, which can use coal as a raw material. But the leader of
The $2 5b default of chipmaker Tsinghua signals China has no mercy for debt-fuelled growth dealstreetasia.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from dealstreetasia.com Daily Mail and Mail on Sunday newspapers.
Dec 11 2020, 4:40 AM
December 10 2020, 7:22 AM
December 11 2020, 4:40 AM
(Bloomberg) China will almost certainly let a high-flying chipmaker default on $2.5 billion worth of dollar debt, the strongest signal yet that foreign investors shouldnât count on Beijing to bail them out.
(Bloomberg) China will almost certainly let a high-flying chipmaker default on $2.5 billion worth of dollar debt, the strongest signal yet that foreign investors shouldnât count on Beijing to bail them out.
Tsinghua Unigroup Co. said it wonât be able to repay the principal on a $450 million dollar bond due Thursday, which would trigger cross defaults on a further $2 billion of debt. This would be the companyâs first dollar bond repayment failure and came after it defaulted on a 1.3 billion yuan ($199 million) local bond last month.