China debt markets show more stress

Shanghai

CHINA'S debt markets signalled more stress as a duck processor cited increasing difficulty getting credit as it defaulted on bank loans ahead of a bond deadline next week.

Zhong'ao Holdings Group Co, a closely held maker of smoked duck leg and other foods, owes banks 295.96 million yuan (S$64.7 million) in loan principal and interest, according to a statement dated June 1 on Chinamoney. The company, based in the eastern province of Shandong, must repay 200 million yuan of 7.39 per cent notes on June 12.