(Yicai Global) Nov. 9 -- A Chinese firm's novel approach of repaying bondholders using its ham products and meat gift sets has paid off as its shares hit the ten percent daily upper limit allowed in the country's stock market for the second day running.
Chuying Agro-Pastoral Group [SHE:002477] hit CNY1.91 in trading today after the Zhengzhou-based luxury meat processor paid holders of CNY271 million (USD39 million) of its debts using its own products rather than making interest payments, according to a statement.
The firm, which charges CNY2,599 (USD374) per kilogram for its Chinese Tibetan ham, had failed to repay CNY528 million in local bonds this week after being hit by a tight cashflow due to production restrictions related to the outbreak of African swine fever in the country.
The strategy is only a preliminary plan and the ham is yet to be delivered as a concrete deal is still under discussion.
Editor: William Clegg