Shanghai Jinlu Financial Advisors Halts Wealth Product Payments

Shanghai-based Jinlu Financial Advisors is suspending payments on some wealth management products jointly created with partner Shanghai Kuailu Investment Group because of a 300 million yuan ($46 million) cash shortage, according to a statement on Jinlu’s website on Thursday.

Jinlu didn’t explain the reason for the gap, saying only that investors gathered at its headquarters to ask about the payment on Thursday. The company said it will share liability for the product and offer a payment plan to investors within one week. Kuailu has committed at least 3 billion yuan of assets as collateral for the delayed payment, according to the statement.