China’s chip industry has entered a period of financial stress.
Tsinghua Unigroup Co. moved to reassure bondholders in the wake of a plunge in its debt that its finances are in good shape.
The company is helping build out China’s domestic chip industry. A recent statement noted the group has abundant cash and liquidity, and hasn’t defaulted.
Peking University-backed Founder Group also saw a bond selloff amid concern about its finances. The firm has posted “big” losses in the past three years as its core business in the IT sector faces fierce competition and its pharmaceutical business also has low profitability. See Bloomberg for the full article.