Another SOE Default: Erzhong; Unless You Use Chinese Rules

Two weeks ago: Another SOE Default: China National Erzhong. The bill came due today. It was unpaid.

Another Chinese SOE Flirts With Default as Broker Calls It Early
“Onshore analysts haven’t reached a conclusion on if Erzhong has defaulted,” said Shi Lei, head of fixed income research at Ping An Securities Co. in Beijing. “Even if Erzhong’s parent doesn’t pay interest now, it doesn’t mean it won’t pay interest in the future. According to the international market’s definition, Erzhong may have defaulted, but according to the Chinese market definition, it is not yet.”
So no problem.

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