China's Tsinghua Unigroup Defaults On $198 Million Bond

Tsinghua Unigroup, a major government-backed player in China’s technology race, has defaulted on a 1.3-billion-yuan ($197.96 million) bond, three sources said, as several high-profile delinquencies by state firms rattled the country’s bond market, Reuters reported. The default by Tsinghua Unigroup, a wholly-owned division of the prestigious Tsinghua University in Beijing, on Monday immediately triggered a credit rating downgrade that is expected to weaken the company’s financial health. The semiconductor conglomerate has been a major driving force in Beijing’s campaign to boost its chip industry amid an ongoing spat over trade and technology with Washington, which has drawn attention to China’s reliance on key imported components. Read more