China State-Owned Semiconductor Company Tsinghua Unigroup Bond Prices Plunge... Liquidity Crisis

[Asia Economy Beijing=Special Correspondent Park Sun-mi] The corporate bond prices of Tsinghua Unigroup, a Chinese state-owned memory semiconductor company, plummeted sharply, leading to a suspension of trading.

According to Chinese economic media Xinlang Caijing on the 9th, the corporate bond '19Ziguang01' issued by Tsinghua Unigroup fell by 20% in the bond market the previous morning. The Shanghai Stock Exchange temporarily suspended bond trading due to the sudden sharp drop in bond prices. Although trading resumed later, the decline in '19Ziguang01' deepened, ultimately closing at 75.47 yuan, down 24.53%. The bond price of Tsinghua Unigroup recorded the largest single-day drop in history and hit its lowest price.

This bond is rated AAA with a coupon rate of 5.11% and matures on January 25, 2024. The issuance size is 900 million yuan.

The sharp drop in bond prices was influenced by rumors spreading in the market that Tsinghua Unigroup was facing a liquidity crisis. As the liquidity crisis rumors spread, a Tsinghua Unigroup official dismissed them, stating, "There have been no negative news or adverse events within the company recently," and "Currently, the group's management is relatively normal."

The company is reportedly seeking ways to overcome the liquidity crisis by receiving financial support from three banks. However, specific details regarding the timing of liquidity procurement have not been disclosed.

Tsinghua Unigroup is a Chinese state-owned memory semiconductor design and manufacturing company in which Tsinghua University holds a 51% stake. Established in 1988, it has grown significantly through bold investments supported by the government's semiconductor industry promotion policies. It employs more than 40,000 people worldwide and has total assets of approximately 270 billion yuan.

Through its subsidiary Yangtze Memory, which only produced NAND flash, Tsinghua Unigroup declared last year that it would expand into the DRAM sector. It announced plans to invest trillions of yuan to build a DRAM semiconductor production plant in Chongqing Yangjiang New District and start mass production from 2021. However, no news of groundbreaking has been reported yet.

This content was produced with the assistance of AI translation services.