March 11, 2014 / 6:56 PM / 4 years ago

Trading in China's Baoding Tianwei suspended after losses reported

March 11 (Reuters) - 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 Exchange.

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)

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