A series of unwelcome surprises in China’s huge corporate-bond market has knocked investors’ confidence in the local governments that stand behind many issuers, The Wall Street Journal reported. In one high-profile example, Yongcheng Coal & Electricity Holding Group Co. shocked investors last Tuesday by failing to repay a maturing short-term bond worth 1 billion yuan, or the equivalent of $151 million.

China’s central bank injected more than $120 billion yuan into the country’s banking system on Monday in a move to soothe rattled nerves after a series of debt shocks involving state-owned enterprises (SOEs) led to a bond selloff last week, Reuters reported.

Chinese banks and fund managers dumped their holdings of riskier corporate bonds on Friday after a series of defaults by top-rated state-owned enterprises (SOEs) sent shockwaves through the mainland corporate bond market, Reuters reported. As lower-rated bond yields rose, analysts speculated the defaults suggested authorities were going back to cleaning up excessive debt build-up in an economy emerging from the coronavirus pandemic. A Chinese miner that defaulted this week meanwhile canceled Friday’s investor meeting for fear it would turn chaotic after too many creditors showed up.

A smattering of high-profile Chinese debt defaults this week may give bullish foreign investors pause and likely dampen the debt sales outlook, bankers and analysts said, as a bond market selloff revived worries about flaky government support, Reuters reported. State-owned miner Yongcheng Coal and Electricity Holding Group surprised investors and sparked a regulatory probe by defaulting this week on debt obligations just three weeks after it raised a billion yuan ($151 million).

Brilliance Automotive Holdings, the Chinese joint venture partner of BMW, said its parent Huachen Automotive Group may undergo restructuring after a creditor filed an application to a Chinese court, Reuters reported. Huachen, owned by the government of Liaoning province, defaulted on a 1-billion-yuan ($151.88 million) bond last month, joining a growing number of delinquent state firms in a development that hit investor confidence and roiled China’s credit bond market.

The United States, China and other G20 countries on Friday agreed for the first time on a common approach for restructuring government debt as the coronavirus crisis leaves some poorer nations at risk of default, Reuters reported. The agreement came as Zambia said it would not pay an overdue Eurobond coupon by Friday’s deadline, putting it on track to become Africa’s first pandemic-era sovereign default.

China’s bond market regulator launched an investigation on Thursday into a default by a mining firm, the latest in a series of setbacks for state-backed companies as the government winds down support for an economy hit hard by the COVID-19 pandemic, Reuters reported. The National Association of Financial Market Institutional Investors (NAFMII) said it was launching a “self-disciplinary” investigation into Yongcheng Coal & Electricity Holding Group Co Ltd, which defaulted less than a month after issuing a new bond.

Debt-laden China Evergrande Group said it has decided to terminate a reorganisation plan with Shenzhen Special Economic Zone Real Estate & Properties Group Co Ltd, ending a long-awaited backdoor listing plan in Shenzhen, Reuters reported. Market concern has mounted in recent weeks that Evergrande - whose borrowings totalled 835.5 billion yuan ($123.93 billion) at end-June - was headed for a cash crunch if it could not get Chinese approval for the listing plan that has languished for four years.

China suspended Ant Group’s $37 billion listing on Tuesday, thwarting the world’s largest stock market debut with just days to go in a dramatic blow to the financial technology firm founded by billionaire Jack Ma, Reuters reported. The Shanghai stock exchange said it had suspended the company’s initial public offering (IPO) on its tech-focused STAR Market, prompting Ant to also freeze the Hong Kong leg of its dual listing scheduled for Thursday.

Chinese financial institutions, not only the country’s official creditors, are working to help ease the debt woes of African nations, which have worsened due to the pandemic-induced global economic downturn, Beijing’s top Africa diplomat said on Friday, Reuters reported. China, Africa’s largest creditor, has agreed to take part in a World Bank and International Monetary Fund-supported initiative to suspend debt service on official bilateral debt for poorer countries.