Riskiest bonds flagged by Haitong after Tianwei default

A Chinese fertilizer maker facing a bond repayment next month is among four borrowers flagged as the nation's riskiest by Haitong Securities Co after the first State-firm default.

Inner Mongolia Nailun Group Inc must pay 540 million yuan ($87 million) in principal and interest on an 8 percent note on May 20, according to lead underwriter Chinalin Securities. Packaging maker Zhuhai Zhongfu Enterprise Co's 590 million yuan of 5.28 percent securities due May 28 was also on Haitong's list in a report dated Wednesday.

Chinese companies are struggling with an economic slowdown as a report on Thursday showed a manufacturing gauge fell to a 12-month low in April. Borrowing costs for lower-rated companies have risen after Baoding Tianwei Group Co, a power-equipment maker, became China's first State-owned enterprise to default on domestic debt earlier this week.