The story of how a 3 billion-yuan ($496 million) Chinese trust investment wound up on the brink of default shows what billionaire investor George Soros has called the “eerie resemblances” between the 2008 global financial crisis and the nation’s debt market.
Investors in a troubled trust product distributed by Industrial & Commercial Bank of China Ltd. met with the lender’s officials at a private-banking branch in Shanghai, demanding their money amid concern of a default.
Industrial & Commercial Bank of China Ltd. and China Credit Trust Co. may together with the government bail out investors in a troubled trust that sparked concern of defaults on high-yield investment products, according to the Time-Weekly newspaper.
China’s Finance Ministry and securities regulator last year submitted recommendations to the State Council on how to work with the U.S. on cross-border auditing supervision, the Securities Times reported today.
People’s Bank of China Governor Zhou Xiaochuan said the central bank drained cash from the financial system after last month’s Lunar New Year holiday to remove funds injected before the festival, the Securities Times reported.
China’s second-quarter economic growth may be 10.6 percent, the Securities Times reported, citing Pei Changhong, director of the institute of finance and trade economics at the China Academy of Social Sciences.
The southern Chinese city of Shenzhen plans to invest 40 billion yuan ($5.88 billion) in its Qianhai area to make it the “Manhattan” of the Pearl River Delta, the Securities Times reported today, citing the local government.