September 28, 2018 / 8:47 AM / 20 days ago

TABLE-China defaults set for record year, gold firm brings 2018 tally to $8.8bn

    SHANGHAI, Sept 28 (Reuters) - A Chinese gold retailer
defaulted on payments on two separate bonds this week, adding to
a flurry of missed payments that underscores significant credit
risk in China's corporate bond market.
    Gansu Gangtai Holding Group Co Ltd was unable to
make payments after investors exercised options to sell bonds
back to the company, and defaulted on interest payments on a
second bond.
    Just this week, six Chinese companies have announced
defaults on payments on eight bonds worth a total of 8.05
billion yuan. For the year, 25 issuers have defaulted on
payments for 52 bonds worth a total of 60.6 billion yuan ($8.81
billion), according to data compiled by Reuters.
    That compares with 20 issuers defaulting on 44 bonds worth
38.5 billion yuan in 2017, and 35 issuers defaulting on 79 bonds
worth 39.9 billion yuan in 2016, according to official data from
China Central Depository and Clearing Co Ltd, the country's
primary bond clearing house.
    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 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 Sept. 28, 2018:
    
    Issuer       Issuer    Value (CNY)    Maturity    Tenor    Coupon     Type         Notes
                  type                                                             
 Gansu Gangtai  Private   500,000,000    2018/09/26  5 years   7.80%   Private     Defaulted on
 Holding Group                                                         placement   interest
 Co Ltd                                                                            payments
                                                                                   
 Sichuan Coal   SOE       400,000,000    2018/09/25  3 years   7.50%   Private     Paid only 30m
 Industry                                                              placement   interest,
 Group Co Ltd                                                                      defaulted on
                                                                                   principal
 Gansu Gangtai  Private   500,000,000    2018/09/26  3 years   5.80%   Exchange-t  Defaulted on
 Holding Group                                                         raded       interest &
 Co Ltd                                                                corporate   principal
                                                                       bond        (put options
                                                                                   exercised)
 CEFC Shanghai  Private   2,500,000,000  2018/09/26  3 years   7.50%   MTN         Defaulted on
 International                                                                     interest
 Group Ltd                                                                         payments
 Henan          Private   150,000,000    2018/09/24  270 days  7.00%   Super       Defaulted on
 Zhongpin Food                                                         short-term  interest
 Co Ltd                                                                commercial  payments
                                                                       paper       
 Neoglory       Private   2,000,000,000  2018/09/25  5 years   6.50%   Exchange-t  Defaulted on
 Holdings                                                              raded       interest &
 Group Co Ltd                                                          corporate   principal
                                                                       bond        (put options
                                                                                   exercised)
 Neoglory       Private   1,000,000,000  2018/09/22  1 year    6.80%   Short-term  Defaulted on
 Holdings                                                              commercial  interest &
 Group Co Ltd                                                          paper       principal
 Jilin Liyuan   Private   1,000,000,000  2018/09/25  5 years   7.00%   Exchange-t  Defaulted on
 Precision                                                             raded       interest
 Manufacturing                                                         corporate   payments
 Co Ltd                                                                bond        
                                                                                   
 CEFC Shanghai  Private   6,000,000,000  2018/09/10  5 years   4.08%   Exchange-t  Defaulted on
 International                                                         raded       interest
 Group Ltd                                                             corporate   payments
                                                                       bond        
 Zhongrong      Private   600,000,000    2018/09/10  3 years   6.98%   Exchange-t  Defaulted on
 Shuangchuang                                                          raded       interest
 Beijing                                                               corporate   payments
 Technology                                                            bond        
 Group Co Ltd                                                                      
 DMG            Private   400,000,000    2018/09/08  1 year    5.90%   Short-term  Defaulted on
 Entertainment                                                         commercial  interest
 and Media Co                                                          paper       payments
 Ltd                                                                               
                                                                                   
 Wintime        Private   1,000,000,000  2018/08/27  1 year    7.00%   Short-term  Defaulted on
 Energy Co Ltd                                                         commercial  interest &
                                                                       paper       principal
 Jinhong        Private   414,000,000    2018/08/27  5 years   5.00%   Exchange-t  Defaulted
 Holding Group                                                         raded       after some
 Co Ltd                                                                corporate   investors
                                                                       bond        exercised put
                                                                                   options,
                                                                                   initial
                                                                                   issuance was
                                                                                   800 million
                                                                                   yuan
 Haikou Meilan  Private   1,000,000,000  2018/08/24  270 days  7.30%   Super       Defaulted on
 International                                                         short-term  principal
 Airport Co                                                            commercial  payments;
 Ltd                                                                   paper       company says
                                                                                   interest
                                                                                   payments made
                                                                                   on time,
                                                                                   principal
                                                                                   payments
                                                                                   received by
                                                                                   clearing
                                                                                   house Aug. 27
 Dandong Port   Private   2,000,000,000  2018/08/21  3 years   7.20%   Private     Defaulted on
 Group Co Ltd                                                          placement   interest &
                                                                                   principal
 CEFC Shanghai  Private   2,100,000,000  2018/08/20  270 days  6.30%   Super       Defaulted on
 International                                                         short-term  interest &
 Group Ltd                                                             commercial  principal
                                                                       paper       
 Sixth          SOE       1,050,000,000  2018/08/13  5 years   7.00%   Private     Defaulted on
 Engineering                                                           placement   interest &
 Bureau of                                                                         principal
 CCIN Co Ltd                                                                       
 Xinjiang       SOE/LGFV  500,000,000    2018/08/13  270 days  5.89%   Super       Defaulted on
 Production                                                            short-term  interest &
 and                                                                   commercial  principal,
 Construction                                                          paper       made payments
 Corps (XPCC)                                                                      Aug. 15
 Sixth                                                                             
 Division                                                                          
 State-Owned                                                                       
 Asset                                                                             
 Management Co                                                                     
 Ltd                                                                               
 Wintime        Private   3,590,000,000  2018/08/06  5 years   7.30%   Exchange-t  Repaid
 Energy Co Ltd                                                         raded       interest,
                                                                       corporate   defaulted on
                                                                       bond        principal
 Leshi          Private   73,000,000     2018/08/03  5 years   10.00%  Private     Defaulted on
 Internet                                                              placement   interest &
 Information &                                                                     principal
 Technology                                                                        
 Corp                                                                              
                                                                                   
 Wintime        Private   1,000,000,000  2018/07/30  3 years   7.50%   MTN         Triggered
 Energy Co Ltd                                                                     early
                                                                                   expiration
                                                                                   clause,
                                                                                   default on
                                                                                   interest &
                                                                                   principal
 Wintime        Private   1,000,000,000  2018/07/30  3 years   7.50%   MTN         Triggered
 Energy Co Ltd                                                                     early
                                                                                   expiration
                                                                                   clause,
                                                                                   default on
                                                                                   interest &
                                                                                   principal
 Dalian         Private   400,000,000    2018/07/30  3 years   7.00%   MTN         Defaulted on
 Machine Tools                                                                     interest &
 Group Corp                                                                        principal
 CEFC Shanghai  Private   2,000,000,000  2018/07/29  9 months  6.00%   Super       Defaulted on
 International                                                         short-term  interest &
 Group Ltd                                                             commercial  principal
                                                                       paper       
 Inner          Private   800,000,000    2018/07/18  5 years   7.00%   MTN         Defaulted on
 Mongolia                                                                          interest &
 Berun Group                                                                       principal
 Co Ltd                                                                            
 China City     SOE       1,800,000,000  2018/07/16  5 years   4.93%   MTN         Defaulted on
 Construction                                                                      interest
 Holding Group                                                                     payments
 Co                                                                                
 Bright Oceans  Private   326,000,000    2018/07/11  5 years   7.10%   Exchange-t  Defaulted on
 Corp                                                                  raded       interest
                                                                       corporate   payments
                                                                       bond        
 Wintime        Private   1,500,000,000  2018/07/05  1 year    7.00%   Short-term  Defaulted on
 Energy Co Ltd                                                         commercial  interest &
                                                                       paper       principal
 CEFC Shanghai  Private   2,000,000,000  2018/06/25  9 months  5.97%   Super       Defaulted on
 International                                                         short-term  interest &
 Group Ltd                                                             commercial  principal
                                                                       paper       
 CEFC Shanghai  Private   2,500,000,000  2018/06/21  3 years   7.88%   MTN         Defaulted on
 International                                       + N                           interest
 Group Ltd                                                                         payments
 Zhongrong      Private   600,000,000    2018/06/13  3 years   7.50%   Exchange-t  Defaulted on
 Shuangchuang                                                          raded       interest
 Beijing                                                               corporate   payments
 Technology                                                            bond        
 Group Co Ltd                                                                      
 Sunshine       Private   1,800,000,000  2018/06/02  5 years   6.80%   Exchange-t  Defaulted on
 Kaidi New                                                             raded       interest
 Energy Group                                                          corporate   payments
 Co Ltd                                                                bond        
 CEFC Shanghai  Private   2,000,000,000  2018/05/21  9 months  6.00%   Super       Defaulted on
 International                                                         short-term  interest &
 Group Ltd                                                             commercial  principal
                                                                       paper       
 Sichuan Coal   SOE       500,000,000    2018/05/21  5 years   5.94%   MTN         Defaulted on
 Industry                                                                          interest
 Group Co Ltd                                                                      payments
 Fuguiniao Co   Private   1,300,000,000  2018/05/08  5 years   6.50%   Private     Defaulted on
 Ltd                                                                   placement   interest &
                                                                                   principal
 Kaidi          Private   657,000,000    2018/05/05  7 years   6.27%   MTN         Defaulted on
 Ecological                                                                        interest &
 and                                                                               principal
 Environmental                                                                     
 Technology Co                                                                     
 Ltd                                                                               
                                                                                   
 China          Private   91,350,000     2018/04/30  3 years   9.00%   Private     Defaulted on
 Security Co                                                           placement   interest &
 Ltd                                                                               principal
                                                                                   
 Shenwu         Private   2,000,000,000  2018/04/28  3 years   4.60%   Exchange-t  Guarantee
 Environmental                                                         raded       default
 Technology Co                                                         corporate   
 Ltd                                                                   bond        
                                                                                   
 Evergreen      Private   540,000,000    2018/04/24  6 years   7.78%   Exchange-t  Defaulted on
 Holding Group                                                         raded       interest &
                                                                       corporate   principal
                                                                       bond        
 Fuguiniao Co   Private   800,000,000    2018/04/23  5 years   6.30%   Exchange-t  Defaulted on
 Ltd                                                                   raded       interest &
                                                                       corporate   principal
                                                                       bond        
 Bright Oceans  Private   1,210,000,000  2018/04/21  5 years   7.10%   Exchange-t  Defaulted on
 Corp                                                                  raded       interest
                                                                       corporate   payments
                                                                       bond        
 Shenwu         Private   450,000,000    2018/03/14  3 years   8.00%   Private     Defaulted on
 Environmental                                                         placement   interest &
 Technology Co                                                                     principal
 Ltd                                                                               
                                                                                   
 Dandong Port   Private   900,000,000    2018/03/13  5 years   5.67%   MTN         Defaulted on
 Group Co Ltd                                                                      interest &
                                                                                   principal
 Dandong Port   Private   1,000,000,000  2018/03/10  3 years   6.00%   MTN         Defaulted on
 Group Co Ltd                                                                      interest &
                                                                                   principal
 Bright Oceans  Private   755,000,000    2018/03/02  5 years   7.10%   Exchange-t  Defaulted on
 Corp                                                                  raded       interest
                                                                       corporate   payments
                                                                       bond        
 China City     SOE       1,800,000,000  2018/03/01  5 years   3.97%   MTN         Defaulted on
 Construction                                                                      interest
 Holding Group                                                                     payments
 Co                                                                                
 Dalian         Private   500,000,000    2018/02/05  3 years   7.80%   Private     Defaulted on
 Machine Tools                                                         placement   interest &
 Group Corp                                                                        principal
 Dandong Port   Private   2,000,000,000  2018/01/27  5 years   5.50%   Exchange-t  Defaulted on
 Group Co Ltd                                                          raded       interest
                                                                       corporate   payments
                                                                       bond        
 Bright Oceans  Private   209,000,000    2018/01/27  4 years   7.10%   Exchange-t  Defaulted on
 Corp                                                                  raded       interest
                                                                       corporate   payments
                                                                       bond        
 Dalian         Private   400,000,000    2018/01/14  3 years   7.00%   MTN         Defaulted on
 Machine Tools                                                                     interest
 Group Corp                                                                        payments
 Dandong Port   Private   500,000,000    2018/01/13  3 years   7.60%   Private     Defaulted on
 Group Co Ltd                                                          placement   interest &
                                                                                   principal
 Sichuan Coal   SOE       500,000,000    2018/01/09  3 years   7.70%   Private     Defaulted on
 Industry                                                              placement   principal
 Group Co Ltd                                                                      
 
($1 = 6.8811 Chinese yuan)  

 (Reporting by Andrew Galbraith and Steven Bian; Editing by
Sunil Nair)
  
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