China Trust Assets Surge to $1.8 Trillion Amid Default Risks
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China’s trust assets surged 46 percent in 2013 to a record 10.9 trillion yuan ($1.8 trillion), underscoring investor interest in products that pay more than bank deposits even as default risks mount.
About 20 billion yuan of trust products had repayment difficulties in 2012, accounting for 0.27 percent of the industry’s assets at that time, the China Trustee Association said in a statement on its website today. Asset quality is “quite sound and systemic risks are impossible” with 9.06 billion yuan of reserves set aside, the association said.