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Over $6bn in bond sales canceled across China as default scare spreads

SOE woes ignite stress in corporate financing, spilling into sovereign market

The Pudong financial district of Shanghai: Defaults by state-owned enterprises have prompted many Chinese companies to drop plans to issue bonds.   © Reuters

HONG KONG -- The recent wave of corporate bond defaults in mainland China is pushing many domestic businesses to cancel their new issuances.

At least 57 companies have called off plans to issue a combined 44.2 billion yuan ($6.72 billion) of new fixed income securities in the domestic market as of Thursday, Nikkei Asia research shows, since Huachen Automotive Group defaulted on principal and interest of a 1 billion yuan bond on Oct. 23.

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