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China debt crunch

Chinese fashion group Shandong Ruyi fails to repay $153m bond

Underwriter calls on company to talk to and repay investors

Shares of SMCP, the French owner of Sandro, rose Monday even as parent company Shandong Ruyi failed to redeem a domestic Chinese bond.    © Reuters

HONG KONG -- Acquisitive Chinese fashion group Shandong Ruyi Technology Group on Monday missed the repayment deadline for a 1 billion yuan ($152.9 million) domestic bond.

Bank of Communications, the main underwriter of the bond, said on Monday evening that Ruyi had failed to prepare enough funds on time. The state-owned bank vowed to "supervise and urge" the company to come up with the cash needed to fully pay back investors in the three-year 7.5% bond along with 75 million yuan in interest.

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