Maybe the Chinese economic miracle, like a lot of economic miracles, was bought on credit. From Tyler Durden at zerohedge.com:
Something unexpected happened in China last week and it triggered a shockwave across Chinese bond markets.
The abrupt 1 billion yuan ($151 million) bond default on Friday of a state-owned coal mining company in Central China’s Henan province, one of China’s most populous provinces with more than 95 million people, set off reverberations across China affecting its parent company, industry peers and other state-owned bond issuers and triggered an investigation by the interbank bond market regulator. The default came just weeks after Brilliance Auto, a carmaker owned by the Liaoning provincial government which owns 25% of a venture with BMW, announced it would default on a 1 billion yuan bond which matured in late October.
As Caixin reports, Yongcheng Coal and Electricity Holding Group, which just last month got the highest possible, AAA rating from a domestic credit rating company, failed to repay an ultra-short-term bond that matured Tuesday, according to a statement posted by the Shanghai Clearing House.