China Shadow Banks Snap Up Property to Rescue Own Investments
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China’s shadow banks are emerging as unlikely white knights for embattled property firms by becoming mini-developers themselves.
Trust companies including MinMetals Trust Co. and Zhongrong Trust Co. have bought stakes in at least 10 real estate projects this year, betting that the unfinished homes will eventually yield cash to pay off some of the $280 billion in property-backed funds sold by trusts to investors.