SHANGHAI, Nov 17 (Reuters) - Chinese banks and fund managers
dumped their holdings of riskier bonds last week after a series
of credit shocks involving state-owned enterprises (SOEs) jolted
China's corporate bond market.
Below is a list of SOEs whose debt problems in recent weeks
have raised concerns among investors.
Defaults have been mainly concentrated in traditional
industries, including coal and automobiles.
YONGCHENG COAL & ELECTRICITY HOLDING GROUP
Yongcheng Coal & Electricity Holding Group Co Ltd said on
Nov. 10 it failed to make principal and interest payments on 1
billion yuan ($152 million) in maturing commercial paper, just
weeks after raising a similar amount through a debt issue.
The company also said it was uncertain of making payments on
two bonds worth 2 billion yuan that mature this weekend due to
Yongcheng mainly engages in the investment and management of
coal, electricity, railway, chemical and mining.
The company is a unit of Henan Energy and Chemical Industry
Group Co Ltd, and is ultimately controlled by the Henan
provincial State-Owned Assets Supervision and Administration
HUACHEN AUTOMOTIVE GROUP
Huachen Automotive Group, a key state-owned enterprise owned
by the government of Liaoning province, defaulted on a 1 billion
yuan bond in October, citing financial strain.
The company is the parent of Brilliance Automotive Holdings
, the Chinese joint venture partner of BMW.
Huachen said on Monday that creditors had applied to a Chinese
court to restructure the company.
Huachen has a total of 47,000 employees and assets of more
than 190 billion yuan, it said on its website.
Tsinghua Unigroup, a major government-backed player in
China's technology race, defaulted on a 1.3 billion yuan
bond, three sources told Reuters.
China Chengxin International Credit Rating (CCXI) on Nov. 16
downgraded the company's credit rating to BBB from AA, and said
the default could potentially strangle Tsinghua's funding and
squeeze its liquidity.
Tsinghua, founded by its namesake university in Beijing, is
a digital infrastructure and services company with a focus on
electronic components and equipment manufacturing. The company
had nearly 40,000 employees at the end of 2018.
Tsinghua Unigroup has several core subsidiaries, including
Unisplendour Corporation Limited and Unigroup Guoxin
As the defaults partially froze Chinese credit markets, SOEs
announced cancellations of their planned bond issues. Some of
* Sinoma Science & Technology Co Ltd
* Ningde City State-Owned Properties Investment & Management
* Xuzhou Economic and Technological Development Zone
Assets Operation Co Ltd
* Henan Provincial Transportation Development Group Co Ltd
* Panzhihua State-Owned Investment (Group) Co Ltd
* Kaifeng Urban Operation and Investment Group Co Ltd
* Quanzhou Urban Construction Group
* Shanxi Coal Import & Export Group Co Ltd
* Guizhou Publishing Group
* Xinyi Urban Investment
(Reporting by Luoyan Liu and Andrew Galbraith; Editing by Vidya
Ranganathan and Ramakrishnan M.)