China's state-owned metals trader Sinosteel is at the brink of default and to date, the relevant parties are still trying very hard to keep the steel giant afloat.

Anbound’s research team is of the view that, Sinosteel should adjust its debt strategy and adopt a market-oriented approach in handling its mounting debt and detonate its debt bomb in a controlled manner and contain the risk by defaulting its 2 billion yuan October 2017 bonds.

Instead of dragging on the matter longer leading to the deterioration of the systemic problem, it is better to detonate the debt bomb earlier, in a controlled manner to avoid the greater risk from forming.