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China debt crunch

China's Tsinghua Unigroup bond crisis deepens with second default

Repayment failure brings fallout for $2.5bn of offshore debt

HONG KONG -- Chinese chipmaker Tsinghua Unigroup is to default on $2.5 billion of offshore bonds after failing to meet a Thursday deadline to repay a $450 million Eurobond, while also missing an interest payment on one of its onshore bonds.

The widening balance sheet troubles at one of China's highest-profile tech companies, majority-owned by President Xi Jinping's alma mater Tsinghua University, come after it defaulted last month on a 1.3 billion yuan ($199 million) onshore bond.

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