March 11 Trading in Baoding Tianwei Baobian
Electric Co Ltd's stocks and bonds was suspended on
Tuesday after the China-based solar panel maker reported a
second year of losses, it said in a filing to the Shanghai Stock
The news fueled concerns about a deepening credit crisis in
China, the world's No. 1 consumer of industrial metals, after
last week's bond default by another Chinese solar equipment
maker. Copper prices sank to their lowest in more than
three years on Tuesday.
According to Shanghai Stock Exchange rules, trading in
equities and bonds must stop if a company posts two consecutive
years of losses. Baoding's bonds stopped trading indefinitely on
Tuesday, while the stock suspension was for one day.
On Monday, Baoding, which makes power equipment, reported a
net loss of 5.23 billion yuan ($853.74 million) for 2013,
significantly wider than 1.55 billion yuan a year earlier.
The bond default by Shanghai Chaori Solar Energy Science and
Technology Co Ltd late last week reignited concerns
about credit risk in a country where high-yielding debt carries
an implicit state guarantee.
(Reporting by Frank Tang; Editing by Lisa Von Ahn)