China suffers first corporate-bond default.

As expected, China's corporate-bond market has suffered its first ever domestic default, with Shanghai Chaori Solar Energy Science & Technology failing to fully pay 89.8M yuan ($14.7M) in interest that was due today. Until now, China had bailed out distressed companies. Moody's believes that the development will help the growth of China's bond market. It will "signal regulators' higher tolerance for corporate-bond defaults amid financial market reforms, which is in line with the current central administration's shift to adopt more market-oriented policies," Moody's says.