Post by sevenofnine on Aug 18, 2023 11:41:16 GMT -5
OH OH China is having finanical meltodwn with this investment group can you say 2008 again
A major Chinese investment trust has missed payments to corporate investors, sparking a rare protest and adding to concerns that a slump in China’s property market could trigger a wider financial crisis.
At least three Chinese companies — Nacity Property Service, KBC Corporation and Xianheng International Science and Technology — said in separate stock exchange filings in recent weeks that Zhongrong Trust had failed to pay the interest and principal on several investment products. The scale of payments missed exceeded 110 million yuan ($15 million), according to their statements.
Zhongrong Trust, which managed $87 billion worth of funds for corporate clients and wealthy individuals as of the end of 2022, is one of thousands of wealth management firms in China that offer relatively high levels of return to investors.
They are considered part of the “shadow banking” industry, a sector that forms an important source of finance in China. The term usually refers to financing activity that takes place outside the formal banking system, either by banks through off-balance-sheet activities, or by non-bank financial institutions, such as trust firms.
A mysterious and enormous part of China’s financial landscape, the “shadow banking” sector has come under the spotlight as concerns from global investors swirl about the future of the world’s sec
edition.cnn.com/2023/08/18/economy/china-zhongrong-trust-protest-intl-hnk/index.html
A major Chinese investment trust has missed payments to corporate investors, sparking a rare protest and adding to concerns that a slump in China’s property market could trigger a wider financial crisis.
At least three Chinese companies — Nacity Property Service, KBC Corporation and Xianheng International Science and Technology — said in separate stock exchange filings in recent weeks that Zhongrong Trust had failed to pay the interest and principal on several investment products. The scale of payments missed exceeded 110 million yuan ($15 million), according to their statements.
Zhongrong Trust, which managed $87 billion worth of funds for corporate clients and wealthy individuals as of the end of 2022, is one of thousands of wealth management firms in China that offer relatively high levels of return to investors.
They are considered part of the “shadow banking” industry, a sector that forms an important source of finance in China. The term usually refers to financing activity that takes place outside the formal banking system, either by banks through off-balance-sheet activities, or by non-bank financial institutions, such as trust firms.
A mysterious and enormous part of China’s financial landscape, the “shadow banking” sector has come under the spotlight as concerns from global investors swirl about the future of the world’s sec
edition.cnn.com/2023/08/18/economy/china-zhongrong-trust-protest-intl-hnk/index.html
!!
