THREE companies in China have said they lack funds to repay bonds due in coming days, flagging risks defaults may spread as manufacturers grapple with a cash crunch amid a weakening economy.

    Henan Sanli Carbon Products Co. doesn’t have the funds to repay notes due Sunday, it said in a filing to the Chinamoney website Tuesday.

    Huaian Jiacheng Hi-Tech Chemical Industry Co. said on the same website it hasn’t deposited the required amount of principal and interest for bonds due Monday into the payment account because of a cash shortage.

    Huaian Farun Chemical Co. cited overcapacity and operating losses as reasons why it hasn’t deposited required funds for securities due Dec. 28.

    More firms in China are struggling to repay debt amid the worst economic slowdown in a quarter century. Earlier this month, pig iron producer Sichuan Shengda Group Ltd. became at least the seventh Chinese firm to renege on local debt obligations this year. Sinosteel Co., a State-owned steel trader, last week postponed a bond payment a third time. The government this week pledged to offer more support for companies to upgrade technology and equipment, and reduce debt with innovative financial policies.

    Henan Sanli Carbon is one of three issuers of 270 million yuan (US$41.7 million) of 5.9 percent collective notes, which typically are sold by several small and medium-sized companies that don’t have the ability to sell securities on their own.

    Huaian Jiacheng Hi-Tech Chemical and Huaian Farun Chemical are both co-issuers of a 350 million yuan 5.8 percent three-year debenture. The former is responsible for the repayment of 95.2 million yuan including principal and interest while the latter is responsible for 169.3 million yuan, according to the statement. (SD-Agencies)