Who’s Afraid Of The ‘Dandong’? ‘The Real Market Is Coming Out’ In China

Folks are defaulting in China. Specifically, Dandong Port Group Co. missed a payment on some of its local currency bonds on Monday. Apparently, Dandong sold CNY1 billion of five-year notes three years ago at 5.86% with an option for investors to sell them back to the company early. Unsurprisingly, everyone exercised that option and Dandong says they weren't able to pay back the entire principal. They did pay CNY58.6 million in interest earlier this week, according to a statement.