ICBC Won’t Repay Troubled China Trust Product, Official Says

Jan. 17 (Bloomberg) -- Industrial & Commercial Bank ofChina Ltd. is rejecting calls to bail out a troubled 3 billion-yuan ($495 million) trust product, a bank official withknowledge of the matter said, stoking concern that the nation’sfirst default on such high-yield investments may be looming.

ICBC, which distributed the product sold by a trust companyto raise funds for Shanxi Zhenfu Energy Group, won’t assumeprimary responsibility after the coal miner collapsed, accordingto the executive, who asked not be identified while negotiationscontinue. China’s largest bank may be forced to repay investors,most of whom were Beijing-based ICBC’s own private bankingclients, Guangzhou Daily reported yesterday.