Guangdong-owned Zhuhai Huafa missed trust payments and sought bank extensions, and one of its offshore bonds fell a record 17%. The PBOC is adding CNY1tn a day in overnight cash, and five-year government yields hit a record low of 1.34%.
Sinocism’s Bill Bishop notes Zhang Shengmin’s Politburo elevation is the first new member added at a plenum in 32 years, with the 21st Party Congress set for the second half of 2027. Source
Zhuhai Huafa, a Guangdong government-owned group, has missed payments on two trust products and asked at least three banks to extend loans and cut rates. According to Bloomberg, it carried CNY413bn of interest-bearing liabilities as of March (about $62bn) and posted a 2025 loss of CNY16.9bn. Among property-reliant borrowers, it is the largest to seek more time since China Vanke about a year ago. One of its offshore yuan bonds was indicated down a record 17% on Tuesday, at roughly 74% of face value. After that selloff, Bloomberg reported Thursday, Huafa repaid some investors on one of the overdue trust products.
