ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

Angry Sichuan Trust customers told $3.56bn of investments at risk

Regulators find evidence of embezzlement by shareholders

At stake is the repayment of billions of yuan investors put into Sichuan Trust's "trust of trust" (TOT) products. (Photo by VCG)

Investors who poured billions of yuan into financial products sold by troubled Sichuan Trust Co. Ltd. are unlikely to get all of their money back after the company's president said there may not be enough funds to repay everyone on time and a senior regulator said investigators had found evidence of embezzlement by shareholders.

The firm, which has been on the radar of China's regulators for two years because of concerns over the risks attached to the business, failed to repay the principal and interest on a trust product that matured last month. That triggered a wave of protests by investors who were called to another meeting at the company's headquarters in Chengdu, the capital of the southwestern province of Sichuan, on Wednesday.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more