Peking Founder’s bonds tumble as cash crunch leads to onshore default

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By Addison Gong
05 Dec 2019

Investors have dumped Peking University Founder Group Co’s $2.95bn of dollar bonds after a default by the company in onshore China rattled markets. But despite numerous default situations from the country making headlines this year, market participants are not hitting the panic button just yet, writes Addison Gong.

Prices on the Chinese issuer’s $2.95bn of offshore bonds plummeted in the secondary market this week, to trade mostly in the area of 30 cents on the dollar.

The sell-off came as Founder said it was unable to pay principal and interest on a Rmb2bn ($284m) note that ...

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