Investors shun China bond auction

摘要

China's first auction of bonds seized as a result of defaulted repo transactions flopped last week, dealing a setback to efforts to create a market for illiquid and non-performing assets. An unnamed seller last Tuesday offered Rmbl.3bn (US$189m) of 7% perpetual notes and Rmb500m of three-year private placement notes due October 2020, both issued by HNA Group subsidiary tianjin airlines. The auction, however, failed to attract any buyers at the floor price, which was set at 80% of the average last traded price.