16th September 2023 – (Shanghai) Zhongrong International Trust Co, a troubled Chinese trust firm, has recently encountered difficulties in making timely payments on some of its trust products, according to investor sources. This development has raised concerns about contagion in an economy already grappling with a deepening property crisis.
In a late Friday statement posted online, the trust firm acknowledged its inability to fulfill payment obligations on certain trust products due to a combination of internal and external factors. In response, Zhongrong has entered into an agreement with Citic Trust and CCB Trust, enabling these companies to offer “entrusted management services” aimed at enhancing operational and management efficiency.
Zhongrong International Trust is under the control of asset manager Zhongzhi Enterprise Group, which has diverse business interests ranging from mining to wealth management. The group is the latest prominent Chinese conglomerate to face financial difficulties, following the collapses of Anbang Insurance Group and HNA Group.
Last month, Zhongzhi informed investors of its liquidity crisis and announced plans for a debt restructuring, as reported by Reuters. The move was intended to address the company’s financial challenges and restore stability.
