Date
17 October 2017

Trust products worth 100 mln yuan at risk of default, WSJ says

About 100 million yuan (US$16.5 million) of financial products tied to a debt-ridden coal company could soon fall into default in the latest example of risks in China’s shadow banking system, the Wall Street Journal reported Wednesday, citing a notice issued to investors by the trust company. Holders of the trust products linked to coal producer Liansheng Group in northern China’s Shanxi province could not be repaid when they come due on Feb. 19, Jilin Trust was quoted as saying in the statement, adding that the miner is restructuring as it tries to pay back nearly 30 billion yuan in debt. The products were sold to clients of China Construction Bank Corp. (00939.HK, 601939.CN), the report said. They are the fifth of a total six tranches amounting to nearly 1 billion yuan in trust products; the first four tranches—valued at a combined 764 million yuan—have already fallen into default, investors were quoted as saying.

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CG

 

 

 

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