Another China Shadow Bank Seeks State Help as Trust Sector Reels

Another China Shadow Bank Seeks State Help as Trust Sector Reels

China’s state-owned AVIC Trust Co. is seeking assistance from two of its peers after delaying payments on some of its investment products, a sign of worsening problems in the country’s $3.7 trillion trust industry.

Summary: The "shadow banking" represents $250,000 billion (49% of global financial assets), with hedge funds managing 15 times more assets than in 2008 Hedge funds use an extreme leverage effect (up to 100 times their capital) for strategies such as the "basis trade" ($800 billion), creating a significant systemic risk Loans to Shadow banking institutions exceeded $1,200 billion, constituting the fastest growing segment of the US banking system …

China’s leading shadow bank faces payment problem, seeks help amid $3.7 trillion trust industry delays

AVIC Trust seeks state-backed assistance after delaying payments, highlighting deepening troubles in China’s $3. 7 trillion shadow banking industry.

Another China shadow bank seeks state help as trust sector reels

China’s state-owned AVIC Trust is seeking assistance from two of its peers after delaying payments on some of its investment products, a sign of worsening problems in the country’s US$3.7 trillion trust industry.

Another China Shadow Bank Seeks State Help As Trust Sector Reels

China’s state-owned AVIC Trust Co. is seeking assistance from two of its peers after delaying payments on some of its investment products, a sign of worsening problems in the country’s $3.7 trillion trust industry. The closely held trust company said in a statement late Friday that it has entered into a service agreement with CCB Trust Co. and SDIC Taikang Trust Co. The two state-owned financial institutions will handle AVIC Trust’s daily operat…

After several Chinese trust companies were placed under trusteeship due to redemption crises, AVIC Trust, a subsidiary of AVIC Industry Group, became the first large-scale state-owned enterprise trust company to be placed under trusteeship since the promulgation of the Trust Law. Previously, dozens of investors had gathered at AVIC Trust's Shanghai headquarters, holding banners and shouting slogans, demanding the redemption of principal and the …