Hainan Huitong International Trust and Investment Corp (Hitic) has become the fourth mainland finance firm known to have missed a foreign debt repayment in recent months.
The news closely follows reports about defaults by international trust and investment corporations (Itics) controlled by the Guangdong, Guangzhou and Fujian governments.
It has further heightened concerns over the ability of the debt-laden Itics to meet near-term obligations, following the closure of Guangdong International Trust and Investment Corp (Gitic) by the People's Bank of China.
Huitong missed a payment, due on October 19, on a US$7 million loan that was priced 30 basis points over the six-month London interbank offer rate.
Arranger Korea Exchange Bank said the loan was registered with the State Administration for Foreign Exchange (SAFE).
Beijing has said it will honour SAFE-registered foreign debt but would not guarantee payment for non-registered debt.
'So far, the progress in resolving this is very slow. I don't think that the loan will be repaid in the near future,' Kenneth Yuen, head of China lending at Korea Exchange Bank unit KEB Finance was quoted by Bloomberg as saying.
