The default on private bonds issued by Xuzhou Zhongsen will be handled in accordance with market rules, China Securities Regulatory Commission (CSRC) said on Friday.

In a post on its Weibo microblog, the CSRC said it has required the bond issuer, broker and insurer to fulfill their responsibilities to investors.

Xuzhou Zhongsen Tonghao New Board Company in East China's Jiangsu Province, which manufactures construction materials, has missed an interest payment of some 18 million yuan (2.9 million U.S. dollars) on its 180 million yuan privately-placed bonds, according to media reports, the second default by a Chinese company in less than a month.

Last month, solar cell manufacturer Shanghai Chaori Solar Energy Science and Technology Co. failed to pay the full 89.8 million yuan interest due March 7, the first default of a publicly-traded bond in China's onshore market since 1997.

The CSRC said Xuzhou Zhongsen, which is operating normally, failed to pay its bond interest because of a liquidity problem.

According to the CSRC, Hualong Securities, manager of the Xuzhou Zhongsen bond, had asked bond insurer Sino-capital Guaranty Trust Co., Ltd to pay the interest on behalf of Xuzhou Zhongsen within 30 working days.