Long blessed with licenses that allow them to invest in a wide range of assets, Chinese trust companies poured the money they manage and channeled bank loans into property developers such as China Evergrande Group. But now with Evergrande in crisis and many other property developers also missing debt payments, these investments have come back to bite the trust industry.
Caixin learned that debt-ridden real estate giant Evergrande failed to pay interest on multiple trust products on time in September, and some trust products that had invested in the developer were in default by the end of October, including those of Citic Trust, The National Trust, China Minsheng Trust and Everbright Xinglong Trust.
