The growing risk of default by Shanghai Chaori Solar Energy Science & Technology Co. may become China’s “Bear Stearns moment,” prompting investors to reassess credit risks as they did after the U.S. securities firm was rescued in 2008, according to Bank of America Corp.
Shanghai Chaori Solar Energy Science & Technology Co. said it may not be able to make an 89.8 million yuan ($14.6 million) interest payment in full on March 7, in what would be the first default of an onshore bond.
Du Ronghai received an urgent phone call from his private banker at Industrial & Commercial Bank of China Ltd. about an investment opportunity promising a 10 percent annual return. Only for the privileged few, he was told.
Tokyo Electric Power Co. suspended the removal of spent nuclear fuel rods at its wrecked Fukushima plant after a cooling system failed due to a damaged power cable, the company said in an e-mailed statement.
A Chinese manufacturing slowdown fueled speculation that President Xi Jinping’s officials will switch focus in coming months from taming credit growth and financial risks to supporting economic expansion.
The richest people on the planet got even richer in 2013, adding $524 billion to their collective net worth, according to the Bloomberg Billionaires Index, a daily ranking of the world’s 300 wealthiest individuals.
European Union Economic and Monetary Affairs Commissioner Olli Rehn said a debt restructuring in the euro area would cause a “chain reaction” in the banking industry and he ruled out such an operation for Greece.