Tunghsu Optoelectronic Technology, which makes electronic display panels, has repeatedly defaulted on bond payments. Photo: EPA

Third bond default by Chinese electronics firm within a month points to wider corporate governance issues

  • Tunghsu Optoelectronic Technology missed an interest payment on its 1.7 billion yuan (US$241 million) onshore bond on Monday
  • Some of the defaults by Chinese companies have turned out to be corporate fraud, exposing corporate governance issues, said Ivan Chung of Moody’s
Topic |   Dealing with debt

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Tunghsu Optoelectronic Technology, which makes electronic display panels, has repeatedly defaulted on bond payments. Photo: EPA
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An increase in defaults reflects the highly-stretched liquidity conditions faced by China’s private firms. Photo: AFP

Major Chinese electronics maker Tunghsu seeks government lifeline after shock bond default as slowing economy leaves private firms cash-strapped

  • Tunghsu Optoelectronic Technology shocked the market by missing bond payments worth US$285 million even though it had recently reported huge cash holdings
  • Private companies have made up about 90 per cent of Chinese corporate defaulters this year amid slowing economy, crackdown on shadow banking
Topic |   Banking & Finance

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An increase in defaults reflects the highly-stretched liquidity conditions faced by China’s private firms. Photo: AFP
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