Bond defaults could become the norm

Analysts wonder 'how long' before another SOE misses a payment, reports Zheng Yangpeng. Zheng Yangpeng

As China's stock market has inspired, but also given the jitters in equal measures to some investors after a long rally in recent months, the nation's bond market has presented a different story.

A power-transformer maker has become the country's first State-owned company to default in the onshore note market, and the second in just a fortnight to default in China's fledgling bond market.