China markets team leader, senior correspondent, Shanghai, China
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Jul 22, 2014

Yields spike on Chinese construction firm’s bond as default looms

SHANGHAI (Reuters) – Yields on a short-term bond issued by a troubled Chinese construction company have more than doubled in recent days as hope fades that the firm can avoid defaulting on Wednesday.

On July 16, unlisted Huatong Road & Bridge Group Co Ltd announced that it was uncertain about its ability to make payment on a 400 million yuan ($64.4 million) one-year bond issue that matures July 23, after its chief executive was placed under investigation for illegal behaviour.

Jul 18, 2014

Chinese firm says getting local government help to avoid landmark bond default – report

SHANGHAI (Reuters) – A Chinese construction company at risk of declaring a landmark bond default on nearly $65 million is getting local political support to hold off creditors and get cash, state media reported on Friday, citing sources at the struggling firm.

Huatong Road & Bridge Group Co Ltd announced on Wednesday it was uncertain about its ability to pay principal on a 400 million yuan one-year bond maturing on July 23. The company blamed an official investigation into allegations of illegal activity by its chief executive.

Jul 18, 2014

Chinese firm says getting local govt help to avoid landmark bond default – report

SHANGHAI, July 18 (Reuters) – A Chinese construction company
at risk of declaring a landmark bond default on nearly $65
million is getting local political support to hold off creditors
and get cash, state media reported on Friday, citing sources at
the struggling firm.

Huatong Road & Bridge Group Co Ltd announced on Wednesday it
was uncertain about its ability to pay principal on a 400
million yuan one-year bond maturing on July 23.
The company blamed an official investigation into allegations of
illegal activity by its chief executive.

Jul 18, 2014

PBOC cuts back on intervention, but not totally hands off

SHANGHAI, July 18 (Reuters) – China’s central bank has
reduced heavy intervention in the currency market, removing a
thorny issue in relations among the world’s top two economies,
but traders say the People’s Bank of China (PBOC) isn’t about to
take its hands off the wheel.

Chinese firms, including banks, have increasingly held on to
dollars as capital inflows into China slow as a result of
slowing economic growth and particularly after the PBOC let the
yuan surprisingly fall in the first four months of 2014.

Jul 17, 2014

CEO probe puts China firm at risk of landmark bond default

SHANGHAI, July 17 (Reuters) – A little-known construction
firm is at risk of becoming the first borrower to default in
China’s largest bond market, highlighting how Beijing’s
anti-corruption drive could aggravate financial pressure on the
struggling real estate sector.

Huatong Road & Bridge Group Co Ltd said on Wednesday it was
uncertain whether it would be able to pay interest or principal
on an 400 million yuan ($64.48 million) one-year bond set to
mature on July 23, which it blamed on an ongoing official
investigation into its chief executive.

Jul 9, 2014

Bank of China denies state TV allegations of money laundering

SHANGHAI, July 9 (Reuters) – State-owned Bank of China (BOC)
denied on Wednesday a TV report alleging
some branches had helped clients launder money to take out of
China, saying these branches were involved in a legitimate
programme to move capital offshore.

The report, aired by China Central Television (CCTV), was an
undercover investigation that focused on a programme offered by
BOC called “You Hui Tong”. The programme is designed to help
Chinese individuals taking part in investment emigration
programmes in other countries to move cash offshore in amounts
the exceed the current $50,000 annual cap.

Jul 9, 2014

Lending relaxation to help stabilise market interest rates

SHANGHAI, July 9 (Reuters) – China’s decision to ease rules
used to calculate loan-to-deposit ratios for Chinese banks (LDR)
will moderate spikes in seasonal cash demand from regulatory
requirements and thus help stabilise money market rates, traders
say.

Regulators have been moving to stabilise money market rate
volatility after a severe market squeeze in June last year
rattled markets around the world, who misread a short-duration
rise as a harbinger of money tightening.

Jul 4, 2014

China stock regulator hands over JV fund insider trading cases to police

SHANGHAI, July 4 (Reuters) – China’s securities regulator on
Friday said it has handed police five cases of suspected insider
trading at a Chinese-foreign joint venture fund management
company, in the latest announcement of an official clamp-down on
stock market irregularities.

The China Securities Regulatory Commission (CSRC) launched a
probe in March into allegations that five managers at HFT
Investment Management Co had made use of inside information to
trade stocks, and found evidence of suspected criminal acts, the
regulator said in a statement in its microblog.

Jul 3, 2014

China frees retail yuan exchange rate in move toward convertibility

SHANGHAI/BEIJING, July 3 (Reuters) – China has permitted
banks to freely set their own exchange rates for the yuan
against the dollar in over-the-counter transactions — another
step toward freeing the exchange rate from government control.

Banks were previously required to price the yuan/dollar rate
they offered retail clients within 3 percent in either direction
of the Chinese central bank’s midpoint on a given day.

Jul 2, 2014

Chinese bank sues local govt property company in rare public spat

SHANGHAI, July 2 (Reuters) – A Chinese bank is suing a local
government-controlled property investment firm over a bad loan,
in a rare public display of a deepening rift between lenders and
borrowers in China’s murky $3 trillion local debt market.

The unusual step also highlights growing strains as local
governments confront slowing economic growth and a property
sector that has started to cool off after decades of runaway
expansion.

    • About Pete

      "Pete Sweeney is Senior Markets Correspondent at Reuters, focused on bond, forex, interbank and equities markets. Previously editor of China Economic Review, a Hong Kong-based monthly magazine focused on providing news and analysis on the mainland economy. Sweeney came to China as a Fulbright scholar in 2008, and conducted research on Chinese business policy in Hangzhou, Harbin and Chengdu. He has also lived and worked in Belgium, Ecuador and the U.S. He speaks Chinese, at the expense of his Spanish."
      Joined Reuters:
      March 2012
      Languages:
      Mandarin, Spanish
      Awards:
      Fulbright Scholar
      Foreign Languages and Area Studies Scholar
      Boeing Merit Award
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