Odd as it may sound, the fact that Huatong Road & Bridge Group dodged a default on July 23 is bad news. Until Wednesday, markets had been buzzing about the possibility the Shanxi-based builder might become the second mainland company in four months to renege on a bond payment. Then, Huatong beat the odds, repaying all principal and interest on a $65 million bond. How? Some aggressive fundraising, along with a little help from local government bodies. According to press reports, municipal officials intervened to prevent the company's collapse. Two immediate worries spring to mind. One, China's moral-hazard bubble ... (full story)