(Bloomberg Opinion) — China’s $13 trillion bond market seems calmer this year, with fewer defaults than 2018. Underneath the surface, though, is a churning current that threatens to swallow investors who aren’t careful.The case of Xiwang Group Co. is one such cautionary tale. Just days ago, this distressed industrial conglomerate in the northeast province of Shandong thought it could borrow for peanuts. The company, whose business operations span corn-oil processing to steel manufacturing, tried to raise 450 million yuan ($63.5 million) at a coupon range of 7.5% to 8.5%. The deal was scrapped Wednesday. Meanwhile, the company warned in a …read more
Source:: Yahoo Finance
