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China debt crunch

China's Yongcheng and Unigroup survive despite series of defaults

Troubles of two government-affiliated companies underscore investors' risks

One problem for investors in China, an analyst says, is that officials in Beijing are not clear on what they will protect and what they won't. (Source photos by AP and AFP/Jiji) 

HONG KONG -- Two Chinese companies battered by debt problems in recent months highlight the credit woes facing some government-affiliated enterprises, but also illustrate how they are able to continue operations despite multiple bond defaults.

Chipmaker Tsinghua Unigroup is plagued by missed bond payments, while Yongcheng Coal & Electricity Holding Group continues to stay afloat amid waves of bond deadlines through closed-door meetings with its investors.

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