Industrial and Commercial Bank of China Ltd. (ICBC) is refusing to bail out a troubled 3 billion yuan (U$495 million) trust product, Bloomberg reported Friday, citing a bank official with knowledge of the matter. The move stoked concern the nation’s first default on such high-yield investment may be looming. ICBC, which distributed the product sold by a trust company to raise funds for Shanxi Zhenfu Energy Group, will not assume responsibility after the coal miner collapsed, the executive was quoted as saying. China’s largest bank may be forced to repay investors, most of whom were ICBC private banking clients, Guangzhou Daily reported separately. A default on the investment product issued by China Credit Trust Co., which comes due Jan. 31, may shake investors’ faith in the implicit guarantees offered by trust companies to lure funds from wealthy people, the report said.
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