August 21, 2018 / 2:39 AM / 3 months ago

Latest CEFC default brings China bond defaults near $6 billion in 2018

    SHANGHAI, Aug 21 (Reuters) - CEFC Shanghai International
Group, a unit of troubled energy firm CEFC China Energy Co Ltd,
defaulted on bond payments due Monday, the company's fifth bond
default this year.
    As of CEFC's latest default, 18 Chinese companies, mostly
private, have defaulted on payments on 37 corporate bonds worth
41.2 billion yuan ($6 billion) so far in 2018, adding to worries
about risks to the economy as growth slows and a trade war with
the U.S. intensifies.
    The list of bond defaults includes a rare missed payment by
a local government financing vehicle. Last week, Xinjiang
Production and Construction Corps (XPCC) Sixth Division
State-Owned Asset Management Co Ltd missed bond payments
totalling 521.8 million yuan due Aug. 13, before making the
payments two days later.
    Amid the rise in defaults, Beijing has punished one of the
country's top ratings agencies, with two regulators criticising
the company for providing expensive consultation services to
firms for which it also issued credit ratings.
    While China has moved to ease credit conditions and
encourage investment in corporate bonds to support struggling
private firms amid signs of slowing economic growth, corporate
issuers have not been the main beneficiaries of these policies.

    Despite the relatively high number of cases this year,
China's policymakers have said that the default rate remains
much lower than in many other countries, and that risks in the
bond market are generally controllable. 
    
Following is a list of defaults as of Aug. 21, 2018:
    
    Issuer       Issuer    Value (CNY)    Maturity    Tenor    Coupon     Type
                  type                                                 
 CEFC Shanghai  Private   2,100,000,000  2018/08/20  270 days  6.30%   Super
 International                                                         short-term
 Group Ltd                                                             commercial
                                                                       paper
 Sixth          SOE       1,050,000,000  2018/08/13  5 years   7.00%   Private
 Engineering                                                           placement
 Bureau of                                                             
 CCIN Co Ltd                                                           
 Xinjiang       SOE/LGFV  500,000,000    2018/08/13  270 days  5.89%   Super
 Production                                                            short-term
 and                                                                   commercial
 Construction                                                          paper
 Corps (XPCC)                                                          
 Sixth                                                                 
 Division                                                              
 State-Owned                                                           
 Asset                                                                 
 Management Co                                                         
 Ltd                                                                   
 Wintime        Private   3,590,000,000  2018/08/06  5 years   7.30%   Exchange-t
 Energy Co Ltd                                                         raded
                                                                       corporate
                                                                       bond
 Leshi          Private   73,000,000     2018/08/03  5 years   10.00%  Private
 Internet                                                              placement
 Information &                                                         
 Technology                                                            
 Corp                                                                  
                                                                       
 Wintime        Private   1,000,000,000  2018/07/30  3 years   7.50%   MTN
 Energy Co Ltd                                                         
                                                                       
 Wintime        Private   1,000,000,000  2018/07/30  3 years   7.50%   MTN
 Energy Co Ltd                                                         
                                                                       
 Dalian         Private   400,000,000    2018/07/30  3 years   7.00%   MTN
 Machine Tools                                                         
 Group Corp                                                            
 CEFC Shanghai  Private   2,000,000,000  2018/07/29  9 months  6.00%   Super
 International                                                         short-term
 Group Ltd                                                             commercial
                                                                       paper
 Inner          Private   800,000,000    2018/07/18  5 years   7.00%   MTN
 Mongolia                                                              
 Berun Group                                                           
 Co Ltd                                                                
 China City     SOE       1,800,000,000  2018/07/16  5 years   4.93%   MTN
 Construction                                                          
 Holding Group                                                         
 Co                                                                    
 Bright Oceans  Private   326,000,000    2018/07/11  5 years   7.10%   Exchange-t
 Corp                                                                  raded
                                                                       corporate
                                                                       bond
 Wintime        Private   1,500,000,000  2018/07/05  1 year    7.00%   Short-term
 Energy Co Ltd                                                         commercial
                                                                       paper
 CEFC Shanghai  Private   2,000,000,000  2018/06/25  9 months  5.97%   Super
 International                                                         short-term
 Group Ltd                                                             commercial
                                                                       paper
 CEFC Shanghai  Private   2,500,000,000  2018/06/21  3 years   7.88%   MTN
 International                                       + N               
 Group Ltd                                                             
 Zhongrong      Private   600,000,000    2018/06/13  3 years   7.50%   Exchange-t
 Shuangchuang                                                          raded
 Beijing                                                               corporate
 Technology                                                            bond
 Group Co Ltd                                                          
 Sunshine       Private   1,800,000,000  2018/06/02  5 years   6.80%   Exchange-t
 Kaidi New                                                             raded
 Energy Group                                                          corporate
 Co Ltd                                                                bond
 CEFC Shanghai  Private   2,000,000,000  2018/05/21  9 months  6.00%   Super
 International                                                         short-term
 Group Ltd                                                             commercial
                                                                       paper
 Sichuan Coal   SOE       500,000,000    2018/05/21  5 years   5.94%   MTN
 Industry                                                              
 Group Co Ltd                                                          
 Fuguiniao Co   Private   1,300,000,000  2018/05/08  5 years   6.50%   Private
 Ltd                                                                   placement
 Kaidi          Private   657,000,000    2018/05/05  7 years   6.27%   MTN
 Ecological                                                            
 and                                                                   
 Environmental                                                         
 Technology Co                                                         
 Ltd                                                                   
                                                                       
 China          Private   91,350,000     2018/04/30  3 years   9.00%   Private
 Security Co                                                           placement
 Ltd                                                                   
                                                                       
 Shenwu         Private   2,000,000,000  2018/04/28  3 years   4.60%   Exchange-t
 Environmental                                                         raded
 Technology Co                                                         corporate
 Ltd                                                                   bond
                                                                       
 Evergreen      Private   540,000,000    2018/04/24  6 years   7.78%   Exchange-t
 Holding Group                                                         raded
                                                                       corporate
                                                                       bond
 Fuguiniao Co   Private   800,000,000    2018/04/23  5 years   6.30%   Exchange-t
 Ltd                                                                   raded
                                                                       corporate
                                                                       bond
 Bright Oceans  Private   1,210,000,000  2018/04/21  5 years   7.10%   Exchange-t
 Corp                                                                  raded
                                                                       corporate
                                                                       bond
 Shenwu         Private   450,000,000    2018/03/14  3 years   8.00%   Private
 Environmental                                                         placement
 Technology Co                                                         
 Ltd                                                                   
                                                                       
 Dandong Port   Private   900,000,000    2018/03/13  5 years   5.67%   MTN
 Group Co Ltd                                                          
 Dandong Port   Private   1,000,000,000  2018/03/10  3 years   6.00%   MTN
 Group Co Ltd                                                          
 Bright Oceans  Private   755,000,000    2018/03/02  5 years   7.10%   Exchange-t
 Corp                                                                  raded
                                                                       corporate
                                                                       bond
 China City     SOE       1,800,000,000  2018/03/01  5 years   3.97%   MTN
 Construction                                                          
 Holding Group                                                         
 Co                                                                    
 Dalian         Private   500,000,000    2018/02/05  3 years   7.80%   Private
 Machine Tools                                                         placement
 Group Corp                                                            
 Dandong Port   Private   2,000,000,000  2018/01/27  5 years   5.50%   Exchange-t
 Group Co Ltd                                                          raded
                                                                       corporate
                                                                       bond
 Bright Oceans  Private   209,000,000    2018/01/27  4 years   7.10%   Exchange-t
 Corp                                                                  raded
                                                                       corporate
                                                                       bond
 Dalian         Private   400,000,000    2018/01/14  3 years   7.00%   MTN
 Machine Tools                                                         
 Group Corp                                                            
 Dandong Port   Private   500,000,000    2018/01/13  3 years   7.60%   Private
 Group Co Ltd                                                          placement
 Sichuan Coal   SOE       500,000,000    2018/01/09  3 years   7.70%   Private
 Industry                                                              placement
 Group Co Ltd                                                          
 
($1 = 6.8740 Chinese yuan renminbi)

 (Reporting by Andrew Galbraith and Steven Bian; Editing by Eric
Meijer)
  
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