Another China Shadow Bank Seeks State Help as Trust Sector Reels
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China’s state-owned AVIC Trust Co. is seeking assistance from two of its peers after delaying payments on some of its investment products, a sign of worsening problems in the country’s $3.7 trillion trust industry.
The closely held trust company said in a statement late Friday that it has entered into a service agreement with CCB Trust Co. and SDIC Taikang Trust Co. The two state-owned financial institutions will handle AVIC Trust’s daily operations and management, and its outstanding claims and debts will remain unchanged, it said.