Article by [author-name] (c) South China Morning Post - Read full story here.
China chip maker Tsinghua Unigroup to default on US$450 million bond as concerns mount over debt levels on mainland
Chinese chip maker Tsinghua Unigroup said that it cannot repay the principal on a US$450 million bond due on Thursday, the latest default by the company and a blow to Beijing’s efforts to build a self-sufficient semiconductor industry.The failure to repay principal on its debt could trigger cross-defaults on as much as US$2 billion in additional debt held by the company, which is majority owned by a division of Beijing’s prestigious Tsinghua University. Tsinghua Unigroup has additional bonds…