In April, the bond prices of a Chinese financial services company called Huarong fell like a stone. Huarong is a distressed debt specialist and asset management company, with assets of around $260 billion and $22 billion in offshore debt (USD denominated). The price declines were due to several factors, but the primary cause was the delay in the release of audited financial accounts for the first quarter. Investors’ concerns were heightened because Huarong’s former chairman was executed in January on corruption charges. Executions for financial crimes are relatively rare in China, but the scale of the bribery and corruption charges…

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