Bloomberg financial services reports that the "unprecedented boom in China’s $3 trillion corporate bond market is starting to unravel" and that investors in China’s yuan-denominated company notes have driven up yields for nine of the past 10 days and triggered the biggest selloff in onshore junk debt since 2014. It assesses that investor panic leads to tighter credit conditions, dealing a blow to President Xi Jinping’s plan to keep the economy growing by at least 6.5 percent over the next five years. The financial news service stated that seven Chinese companies reneged on bond obligations this year, of which three were part-owned by the Chinese government. Dongbei Special Steel Group Co. missed a third payment on April 13, 2016; Chinacoal Group Shanxi Huayu Energy Co. failed to make a distribution on April 6, 2016; Baoding Tianwei Group Co., a government-owned maker of electrical transformers that first defaulted a year ago, said on April 14 that it may not be able to repay principal and interest on five-year bonds due this month; State-owned China Railway Materials Co. halted its bond trading on April 11, saying it’s studying debt “repayment issues”. At least 62 Chinese firms have postponed or scrapped planned note sales this month. It observed that People’s Bank of China (PBoC) Governor Zhou Xiaochuan appears fully aware of the risks and the PBOC, which has cut official lending rates six times since November 2014, still has “ample monetary ammunition” to counter a deeper selloff in the bond market.