Chinese Trust Firm Clients Say Wealth Product Payout Delayed
- Liquidity concerns arise over major shareholder of Zhongrong
- Delay is latest sign of turmoil in China financial sector
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Two clients of Chinese trust company Zhongrong International Trust Co. said the firm delayed payment of maturing wealth products amid reports of liquidity concerns at a major shareholder, the latest sign of turmoil in China’s financial sector.
Nacity Property Service Co. and KBC Corp. first announced news of the delayed payments in statements Friday evening. KBC, a carbon products manufacturer, said in a statement with the Shanghai Stock Exchange that the delayed payments were tied to 60 million yuan ($8.3 million) invested with Zhongrong and wouldn’t affect company operations.