Date
16 December 2017

New online trust product prompts warning, paper says

A new trust product has drawn a warning from legal experts over concerns about investor protection, China Securities Journal reported Friday. The product is being sold by cstpay.com which is offering returns of up to 10 percent for a minimum subscription of 100 yuan (US$16.10). Once retail subscriptions reach 1 million yuan, cstpay.com will enter into a trust purchase agreement with a trust company on behalf of investors. However, legal experts warned this arrangement does not protect trust holders, the report said. As of April 3, cstpay.com had launched four trust products on its website, each drawing 1 million yuan to 3 million yuan, the report said.  

– Contact HKEJ at [email protected]

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