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[SHANGHAI] State-owned China Railway Materials Co Ltd said on Monday it had sought suspension of trade in 16.8 billion yuan (S$3.51 billion) worth of its debt instruments, as the company struggles to make payments.
China Railway Materials Company is the first central government-owned enterprise that has suspended debt instrument trading because of repayment problems.
"In recent years, the company's business has been shrinking continuously, while operating performance has been sliding,"China Railway Materials said in a statement published on the website of the interbank market operator, China Foreign Exchange Trade System.
China's debt market has witnessed an increasing number of defaults over the past year as the economy slows.
The company said that it was currently discussing major issues regarding company restructuring and debt payment, and wished to halt trading in its debt instruments to protect investors.
China Railway Materials Co has nine debt instruments outstanding, with one due to mature on May 17.