Troubled Chinese trust firm Zhongrong has lent money to several of the country's struggling property developers, the Financial Times reported on Sunday citing its analysis of legal and company filings.
Zhongrong International Trust is a giant of China's US$3 trillion shadow finance industry and has recently missed payments of some trust products on time. The Financial Times report said links between Zhongrong and property developers have fuelled fears of spillover effects from aLegal filings from 2022 and 2023 examined by the FT show Zhongrong has pursued more than 8.7 billion yuan in claims against Sunac, which defaulted in 2022 and reached an offshore debt restructuring plan in March. It is unclear what, if any, settlement Zhongrong reached with Sunac, the report said.
Zhongrong Trust's real estate investment exposure accounted for 10.7 per cent of its total assets under management as of the end of 2022, higher than the industry average of 5.8 per cent, according to a report from Citigroup. Zhongrong said on Friday that it was unable to make payments on some trust products on time. The company has already missed payments on dozens of investment products since the end of July, according to investor sources.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »