The proceeds from special purpose bonds are mainly used to fund infrastructure and housing projects. Photo: Xinhua
The proceeds from special purpose bonds are mainly used to fund infrastructure and housing projects. Photo: Xinhua

Debt woes of one of China’s top cities highlighted by first-of-its-kind bond default

  • Tianjin-based Bohai Securities defaulted after buying 375 million yuan (US$55 million) of special purpose bonds issued by the Henan government via auction
  • Henan province responded by blacklisting the brokerage firm which is controlled by the municipality of Tianjin

The proceeds from special purpose bonds are mainly used to fund infrastructure and housing projects. Photo: Xinhua
The proceeds from special purpose bonds are mainly used to fund infrastructure and housing projects. Photo: Xinhua
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