The market's reaction so far to Cloud Live Technology Group’s missed bond repayment shows onshore credit market needs a real default to break investors’s belief in the Chinese state's implicit guarantees.
Cloud Live said in a statement on Tuesday it was short Rmb241 million $39 million needed to repay a Rmb402 million bond issued three years ago.
The company, a Shenzhen-listed restaurant chain with plans to shift focus to information technology, has the distinction of being the onshore debt market’s second default on a public corporate bond after Shanghai Chaori Solar missed an interest payment of Rmb89.8 million on its bond in March last year.
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