A MAKER of electronic display panels has missed payment on two of its yuan bonds, a sign that the nation’s private firms continue to face a funding crunch amid an economic slowdown. Tunghsu Optoelectronic Technology Co., a Shenzhen-listed unit of Tunghsu Group Co., said in a stock exchange announcement Monday that it failed to repay 1.97 billion yuan (US$280 million) principal and interest on a note due to tight liquidity, after its bondholders exercised a put option. It also missed interest payment on another bond. The missed payments underscore rising credit risks among private sector firms, which form the majority of the country’s bond defaulters. Onshore defaults in China excluding Tunghsu were at 110 billion yuan, close to last year’s full-year record of 122 billion yuan, according to data compiled by Bloomberg. Tunghsu Group’s parent, Dongxu Optoelectronic Investment Co., is now planning to sell its 51.46 percent stake in the company to State-owned Assets Supervision and Administration of Shijiazhuang Municipal Government, according to a statement on the Shenzhen Stock Exchange. Trading in the shares of Tunghsu Group’s two listed units were halted yesterday. Tunghsu Group had 50.9 billion yuan cash and cash equivalent assets as of the end of June, and a total liability of 129.1 billion yuan, according to its interim financial results. (SD-Agencies) |