China's Trust Firm Misses Payments, Sparks Economic Turmoil and Investor Complaints
Chinese investors in trust products of Zhongrong International Trust Co., a leading Chinese shadow bank, have lodged complaints with regulators after the firm missed payments on dozens of investment products. The trust firm has missed payments on at least 22 products since late July, involving nearly 30,000 investors and an outstanding value of about $21.96 billion to $27.43 billion. Investors are urging the National Financial Regulatory Administration and the Central Commission for Discipline Inspection to intervene and demand transparency regarding the firm's defaulted products and repayment plans. The situation raises concerns about the stability of China's financial system amid a property market crisis and a slowing economy.