SHANGHAI, Nov 19 (Reuters) - Shares in Tunghsu Optoelectronic Technology Co were suspended from trading on Tuesday, a day after the Chinese maker of electronic components defaulted on two debt instruments.
An exchange-traded bond issued by Tunghsu, and shares in a sibling company were also suspended from trading.
Tunghsu is the latest in a series of mostly private Chinese firms to default on debts, as the country’s economic growth grinds to near 30-year low amid the ongoing Sino-U.S. trade war.
Data compiled by Reuters shows that 45 corporate issuers had defaulted on interest or principal payments on bonds with total principal value of 85.16 billion yuan ($12.12 billion) as of Nov. 12.
That compares with 39 issuers that defaulted on payments on 101 bonds with a total principal value of 102.48 billion yuan in all of last year.
The Shenzhen Stock Exchange said in a statement that Tunghsu shares were halted from trading because the company was planning a change of ownership control. Tunghsu said in a statement it defaulted on two medium-term notes on Monday, worth 3 billion yuan in total, due to a temporary liquidity shortage.
Tunghsu said it also applied to the Shenzhen exchange to halt bond trading due to uncertainty triggered by an unspecified “major event”.
Shares in sibling company Tunghsu Azure Renewable Energy Co were also suspended from trading due to a possible change in ownership control.
Both Tunghsu Optoelectronic and Tunghsu Azure are controlled by Tunghsu Group, a Beijing-based conglomerate with businesses spanning optoelectronic display materials, intelligent equipment and renewable energy. ($1 = 7.0261 Chinese yuan) (Reporting by Samuel Shen and Andrew Galbraith; editing by Richard Pullin)