Chinese Solar Company Threatens Default as Xi Makes Green Push

Baoding Tianwei Yingli New Energy Resources Co., whose majority holder was until last year the world’s biggest panel company by shipments, said there’s uncertainty if it can repay 1.057 billion yuan ($166 million) of bond principal and interest due Oct. 13 after suffering losses. The firm, based in the northern province of Hebei, is still trying to raise money, according to a statement posted on the Chinamoney website Tuesday.

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During President Xi’s visit to the U.S. last week, China said it will start a national pollution-trading system and announced changes to favor electricity produced by greener sources. He must balance those vows with steps to shore up economic growth at its weakest in more than two decades. Concerns are mounting that China National Erzhong Group Co. has become the second state firm to default on onshore debt after a Sept. 28 deadline for an interest payment passed without word whether it was made.

“It’s very likely Tianwei Yingli will default,” said Zhang Li, a bond analyst at Guotai Junan Securities Co. in Beijing. “Many Chinese companies have such a problem this year as the economy slows.”

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