15.7B yuan in bonds are all suspended; will AVIC Finance & Leasing advance the next repayment?

Questioning AI · How does the AVIC Trust risk event affect bond trading suspension decisions?

Cailian Press, April 2 (Editor: Yang Bin) Since negative public opinion emerged about AVIC Industrial Holdings Co., Ltd. (hereinafter “AVIC Industrial”) a year ago, its bond repayment movements have attracted market attention. Today, all of AVIC Industrial’s 15.67 billion yuan of outstanding bonds were suspended due to an announcement of “major matters,” sparking widespread discussion.

Some traders believe that AVIC Industrial’s bonds may be redeemed early, and are closely monitoring subsequent developments and their impact on the overall credit bond market.

AVIC Industrial announced that from April 2, all its outstanding corporate bonds and debt financing instruments will be suspended. The company stated that it is planning major matters related to its bonds and debt financing tools. Due to significant uncertainties surrounding these matters, to ensure fair information disclosure and protect investors’ interests, it will apply for resumption of trading as soon as the matters are clarified, with the resumption date to be announced separately.

Public information shows that AVIC Industrial is a financial holding platform under China Aviation Industry Corporation (hereinafter “AVIC Group”), which holds an 86.75% stake. Its main financial subsidiaries include AVIC Leasing, AVIC Trust, and AVIC Securities, among others, which have faced multiple risk events in recent years.

Starting early 2025, multiple trust products under AVIC Trust, including government-related and real estate trusts, experienced defaults, with funds unable to be repaid as scheduled. In April of the same year, AVIC Trust was jointly entrusted by CCB Trust and CITIC Trust to manage asset recovery and disposal, but progress has been slow overall.

AVIC Industrial’s stock was delisted on May 27, 2025. The company stated that due to significant operational uncertainties that could have a major impact, it is working to terminate its listing. It was unable to disclose its 2024 annual report and the first quarter report of 2025 within the statutory deadline. Currently, AVIC Industrial’s financial data has only been disclosed up to the third quarter of 2024.

China Chengxin International believes that the credit risk related to AVIC Trust poses challenges to AVIC Industrial’s risk control capabilities. The termination of listing and related matters will negatively affect the company’s financing environment and credit quality. AVIC Industrial’s bond repayment reliance on AVIC Group has deepened. In June 2025, China Chengxin International downgraded AVIC Industrial’s issuer rating from AAA to AA+.

Given that AVIC Industrial is a state-owned enterprise, its bond repayment status after suspension has attracted widespread market attention.

A third-party agency, YY Ratings, reported that based on the experience of China Forestry Group Corporation (hereinafter “China Forestry Group”), AVIC Industrial has a certain probability of early redemption of all bonds. On November 21, 2023, China Forestry Group’s 10 domestic bonds totaling 8.145 billion yuan announced suspension. On December 13 of the same year, all 10 bonds reached early redemption arrangements with holders.

According to Enterprise Early Warning, AVIC Industrial currently has 15 outstanding bonds with a total scale of 15.67 billion yuan. Among them, 13 are corporate bonds totaling 13.19 billion yuan; 2 are interbank market debt financing instruments totaling 2.48 billion yuan.

Among the outstanding bonds, “23AVIC Industrial 08” has a balance of 1.5 billion yuan and will mature on September 14 this year. The 1.7 billion yuan “23AVIC Industrial 05,” with a 3+2 year term, will face a put option on June 8 this year; the 1.2 billion yuan “23AVIC Industrial 06,” also with a 3+2 year term, will face a put option on June 27.

Xinbao Investment Research founder Pei Wu said that further announcements from AVIC Industrial are needed, and he is watching the follow-up developments. “Early redemption can be directly announced via ‘holder meeting to review redemption arrangements,’ or it may not require suspension.”

Over the past year, AVIC Industrial has fully repaid principal and interest on its domestic public bonds and debt financing instruments totaling 10.6 billion yuan as scheduled. When “23AVIC Industrial 04” was redeemed in February this year, the company also announced that it would steadily and actively promote repayment to ensure bonds are paid on time, avoiding default.

(Questioning AI · Yang Bin)