Baoding Tianwei Baobian Electric (BTBE), a electric-equipment and solar-panel maker based in northern China, said Thursday night that the company would make its July 11 interest payment on time.
The company’s bonds had been suspended Tuesday on the Shanghai Stock Exchange, after it reported a second year of net losses.
Meanwhile, Shares of BTBE traded 3.9% lower in Shanghai, compared to a 0.6% drop for the Shanghai Composite Index.
Last week, Shanghai Chaori Solar Energy became the first Chinese firm to default on an onshore corporate bond, drawing markets attetion to the nation’s vast and risky shadow-banking sector and raising serious concerns about the health of overall economy.
The suspension of BTBE’s bonds further stoked investors’ fears over China.