A trust company usually manages funds for individuals, companies or other entities.
The reports come two weeks after Zhongzhi Enterprise Group, another major shadow bank, declared itself “insolvent” after missing payments to its investors.
Moody’s Investors Services also warned in September that China’s trust sector could face liquidity challenges during the current property downturn.
The two medical trust products were related to a hospital project in Guizhou, which is one of China’s most indebted provinces, according to Cailianshe.
Last month, at its twice-a-decade Central Financial Work Conference, the Chinese leadership stressed the importance of addressing risks more systematically across the financial sector and preserving overall stability.
Persons:
Hong Kong CNN —, Cailianshe, Wanxiang, hasn’t, Zhongzhi
Organizations:
Hong Kong CNN, Hong Kong CNN — Wanxiang Trust, Century Business Herald, Wanxiang Group, Zhongzhi Enterprise Group, ”, Zhongrong, Zhongzhi Enterprise Group Bloomberg, Getty, Fitch, Moody’s, Services, Kaisa, CNN Local, Financial Work Conference
Locations:
China, Hong Kong, Hangzhou, Zhejiang, Beijing, Guizhou