21 January 2019

China Credit Trust offers way out of troubled trust, paper says

China Credit Trust Co. Ltd. will let investors in a troubled multibillion yuan trust product sell their stakes and recoup their investment, the China Securities Journal reported Tuesday, citing a China Credit statement. Investors have until Jan. 29 to sign an agreement to sell their shares in the product back to China Credit Trust or extend the product after the Jan. 31 expiration date, the report said. About 700 wealthy investors put a combined 3.03 billion yuan (US$501 million) into the product to fund a loan to unlisted coal miner Shanxi Zhenfu Energy Group Ltd., which later collapsed. The product was distributed by Industrial and Commercial Bank of China (601398.CN, 01398.HK).

– Contact HKEJ [email protected]



EJI Weekly Newsletter

Please click here to unsubscribe