A leading Chinese trust firm has missed repayments on dozens of investment products since late last month, a senior official has told investors, adding to fears of a spillover impact in the financial sector from the country's worsening property crisis.
Zhongrong International Trust Co has short-term liquidity troubles, the company's chief compliance officer Wang Qiang was cited as saying to investors by a person who declined to be named due to sensitivity of the matter.
The firm has no plans to meet repayment obligations for dozens of products that have matured, Wang told dozens of investors at the company's headquarters in Beijing on Monday, said the source, who was at the meeting.
Zhongrong did not immediately reply to a Reuters' request for comment. Wang, who is also board secretary and legal adviser, could not immediately be reached.
Bloomberg first reported Zhongrong's comments on missed payments.
Zhongrong's meeting with some investors comes after two listed companies over the weekend said they had not received payment on maturing investment products from the trust firm, which traditionally had sizable real estate exposure.
Missed payments of Zhongrong added to concerns about the outsized exposure of China's $3 trillion shadow banking sector, at a time when the faltering economy is already being roiled by deepening property downturn.
Published 16 August 2023, 11:11 IST