China’s “Moment Of Reckoning” Arrives: $38BN State-Owned Giant Announces Largest Dollar Bond Default In Two Decades | Zero Hedge

China’s “Moment Of Reckoning” Arrives: $38BN State-Owned Giant Announces Largest Dollar Bond Default In Two Decades | Zero Hedge

Two weeks ago we previewed what we said would soon be a D-Day for China’s bond market, as a massive commodities trader and Global 500 state-owned enterprise was set for an “unprecedented” bond default in dollar bond market. And as of last week, this historic default is now in the history books after Tewoo, the closely watched Chinese commodities trader, became the biggest dollar bond defaulter among the nation’s state-owned companies in two decades, in what Bloomberg called a “moment of reckoning” for Beijing as China struggles to contain credit risk in a weakening economy, and as bond defaults hit an all time high and are set to keep rising in the coming years.

Last Wednesday, Tewoo Group announced results of its “unprecedented” debt restructuring, which saw a majority of its investors accepting heavy losses, and which according to rating agencies qualifies as an event of default. As a result of the default, until recently seen as virtually impossible for a state-owned company, investors’ perceptions are undergoing a dramatic U-turn about government-owned borrowers whose state-ownership had for years offered an ironclad sense of security.

via China’s “Moment Of Reckoning” Arrives: $38BN State-Owned Giant Announces Largest Dollar Bond Default In Two Decades | Zero Hedge

4 thoughts on “China’s “Moment Of Reckoning” Arrives: $38BN State-Owned Giant Announces Largest Dollar Bond Default In Two Decades | Zero Hedge”

  1. Though i hate zero hedge because, it is racist and calls for liberals to be rounded up and murdered i am glad. Maybe some of the nazi fuks, that read zero hedge and sponge off rigged stock markets will suck air and jump off of high buildings. Prolly not though. The rich have a knack for mass deception. They will mask a financial crash like they have for 70 years. You will simply see more chaos in society. Why do u even bother to publish this bullshit? Same bullshit for 25 years different day. The alternative propaganda media

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  2. i know of many of them. They triangulate. I will get them . Fuk zero hedge alternstive propaganda brought to you by cambridge analytica and the mercers

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