Hi Clo - This is really a big deal:
" Last week, Sinosteel Co., a state-owned steel trader, failed to pay interest due on bonds maturing in 2017."
The above quote is from your posted article.
Sinosteel is the largest steel company in the world. And, bear in mind - it is a state owned enterprise. The defaulted interest payment is like the part of the iceberg that shows. If the company cannot pay even the interest - what do you think will happen in 2 short years when the entire principal comes due? Noone knows whether the State will step in and bail them out - as we (the U.S. did with our banks, insurance cos, auto cos, brokerages, etc in 200
- or, will it allow them to default and go out of business??
It is not only the steel companies, but all of "old China " entities are in serious jeopardy because of enormous debt.
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