SHANGHAI, July 16 Huatong Road & Bridge Group Co
Ltd, a construction firm in China, said on Wednesday it might
fail to pay investors both interest and principal due on a
one-year short-term bill issue that matures on July 23.
In a statement on the website of the official Shanghai
Clearing House, the company warned that payments of both
interest and principal on the issue are uncertain
because its chairman is currently "assisting an official
If a default occurs, it would be the first public bond
default in China's interbank market, the country's largest bond
market, and would also be the first time a Chinese company is
publicly known to have defaulted on both interest and principal
due on a bond.
China's first publicly-known default was in March when
Chaori Solar defaulted on interest payments due on a bond issued
on the Shenzhen exchange, a far smaller venue.
Huatong issued 400 million yuan ($64.48 million) in one-year
short-term bills in July last year.
($1 = 6.2035 Chinese Yuan)
(Reporting by Pete Sweeney; Editing by Richard Borsuk)