AgenciesRelated
China's interbank bond market regulator said on Thursday it is launching an investigation into Yongcheng Coal & Electricity Holding Group Co Ltd after the state-owned firm defaulted on a bond payment.
The National Association of Financial Market Institutional Investors (NAFMII) said in a statement that it would launch a "self-disciplinary" investigation into Yongcheng, a state-owned mine operator from the central province of Henan, after the company defaulted less than a month after issuing a new bond.
Yongcheng said on Nov. 10 that it was unable to make principal and interest payments on 1 billion yuan of short-term commercial paper maturing that day. Just three weeks earlier, the company issued a three-year 1 billion yuan ($150.97 million) medium-term note on Oct. 20.
NAFMII said the investigation would look into whether Yongcheng and intermediary companies had properly disclosed risks, and could impose sanctions or refer the companies to "relevant departments" if they are found to have violated rules.
The NAFMII statement comes amid rising concern over debt risks associated with Chinese state-owned firms following a string of defaults.
Also on Thursday, the Shanghai Stock Exchange temporarily halted trade in a state-owned firm backed by an elite Chinese university after a rating agency's debt warning sparked a selloff.
The National Association of Financial Market Institutional Investors (NAFMII) said in a statement that it would launch a "self-disciplinary" investigation into Yongcheng, a state-owned mine operator from the central province of Henan, after the company defaulted less than a month after issuing a new bond.
Yongcheng said on Nov. 10 that it was unable to make principal and interest payments on 1 billion yuan of short-term commercial paper maturing that day. Just three weeks earlier, the company issued a three-year 1 billion yuan ($150.97 million) medium-term note on Oct. 20.
NAFMII said the investigation would look into whether Yongcheng and intermediary companies had properly disclosed risks, and could impose sanctions or refer the companies to "relevant departments" if they are found to have violated rules.
The NAFMII statement comes amid rising concern over debt risks associated with Chinese state-owned firms following a string of defaults.
Also on Thursday, the Shanghai Stock Exchange temporarily halted trade in a state-owned firm backed by an elite Chinese university after a rating agency's debt warning sparked a selloff.
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