A series of bond defaults by Tsinghua Unigroup Co. has pushed up the total value of defaults in China’s offshore market this year to almost a third of 2020’s total.
Unigroup defaulted on $2 billion worth of notes in January, comprising the majority of the $2.7 billion total value. Solar power operator GCL New Energy Holdings Ltd. defaulted on a $500 million note on Jan. 30, while Macrolink Global Development Ltd. missed a payment on a $208 million bond on Jan. 4.
In 2020, 13 Chinese companies defaulted on bonds in the offshore market, worth a combined $8.2 billion. They included Unigroup, a university-backed chipmaker, which suffered its first dollar bond repayment failure in December.