China's first default avoided but questions remain

The Shan’xi mines-backed trust product is bailed out but a default of certain financial products will come sooner or later and it will be good for the market.

The threatened default of a Rmb3 billion $490 million Chinese trust fund has been avoided but has nonetheless raised awareness internally about the market's inherent risks.

China Credit Trust CCT, one of the biggest institutions in the country's so-called shadow banking system, said on its website on Monday that it had come to an agreement to repay investors in its Chengzhijinkai No. 1 fund.

The product was distributed through the Industrial and Commercial Bank of China's Shan'xi branch and was due to mature on January 31

According to Chinese-language media outlet Caixin, some strategic investors may take over the coal mine assets...

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