Default test looms for China LGFV bonds

摘要

Investors are waiting to find out whether they will see the first default of an offshore bond issue from a Chinese local government funding vehicle, when an issue from struggling QINGHAI PROVINCIAL INVESTMENT GROUP comes due this month. QPIG, which is based in north-western Qinghai province and produces aluminium, electricity and coal, has a US$300m bond issue maturing on September 26, but is facing a cash crunch.