{"id":2002420,"date":"2023-08-16T12:27:02","date_gmt":"2023-08-16T16:27:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/zhongrong-trusts-missed-payments-trigger-fears-among-chinese-investors\/"},"modified":"2023-08-16T12:30:19","modified_gmt":"2023-08-16T16:30:19","slug":"zhongrong-trusts-missed-payments-trigger-fears-among-chinese-investors","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/zhongrong-trusts-missed-payments-trigger-fears-among-chinese-investors\/","title":{"rendered":"Chinese investors fear the consequences of Zhongrong Trust&#8217;s failure to make timely payments."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fzhongrong-trusts-missed-payments-trigger-fears-among-chinese-investors%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2002420&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"entry-content\">\n<p><h2>Anxious \u2062Chinese Investors Seek Answers Amidst Financial Contagion Fears<\/h2>\n<\/p>\n<blockquote><p>SHANGHAI (Reuters)\u200c &#8211; Anxious Chinese retail investors are \u2063bombarding listed companies \u200bwith questions about their exposure to Zhongrong International\u2063 Trust Co after \u2062missed payments by the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/zhongrong-trusts-missed-payments-trigger-fears-among-chinese-investors\/\" title=\"Chinese investors fear the consequences of Zhongrong Trust's failure to make timely payments.\">trust company triggered fears<\/a> \u200cof\u2064 contagion across the\u200c country\u2019s financial system.<\/p><\/blockquote>\n<p>Investors had submitted more than \u2062100 questions \u2064to dozens of Shanghai- and Shenzhen-listed companies via investor relation platforms asking whether they had bought \u2062Zhongrong\u2019s products, after two listed firms disclosed late on Friday that they had not received payment on maturing trust products from Zhongrong.<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\" style=\"min-width: 320px; min-height: 50px;  text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-1'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p>\n<p>The long list of queries, which keeps growing, suggests Zhongrong\u2019s liquidity crunch could \u2062trigger broader \u200cfears, and \u2064risk of\u2063 contagion in \u2064a \u2062financial system already under pressure from China\u2019s slowing economy.<\/p>\n<p>Zhongrong managed \u200bassets worth 785.7 billion yuan ($107.69 billion) at \u2064the end of 2022, out of which 629.3 billion yuan were linked to trust products, \u200caccording to its <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/parker-america-is-still-working\/\" title=\"PARKER: America Is Still Working\">latest annual report<\/a>.<\/p>\n<p>This shows the negative impact of the \u200dZhongrong incident \u200chas been \u201cpartly priced in by the market,\u201d said Huang Yan, general manager of private fund \u200bmanager Shanghai QiuYang Capital Co.    <\/p>\n<p>Zhongrong, controlled by Chinese financial conglomerate Zhongzhi Enterprise Group, traditionally had sizable real estate exposure. Its missed payments\u200d had added to stress in the financial sector\u2062 from \u2062the country\u2019s worsening property crisis.<\/p>\n<p>One investor on Wednesday asked Shanghai-listed New China Life Insurance Company \u2013 which owned\u200b 14 billion yuan  ($1.92 billion) of products from Zhongrong at\u200c the end \u200cof last \u200cyear \u2013 whether there\u200d was a risk of missed\u2062 payments.\u2063 The company did not reply. <\/p>\n<p>KBC Corp, after disclosing it had \u200b60 million yuan of unpaid mature trust products from Zhongrong, told\u2064 investors on\u200b Wednesday that other wealth management products the firm bought were all low-risk products \u200dfrom banks and securities firms.<\/p>\n<p>Investors also asked dozens of other \u200dlisted \u200dcompanies including Bescient\u200c Technology Co, Shanghai New Vision Microelectronics Co, Nanhua Instruments Co, Jiangsu Azure Corp\u2063 whether they held investment products \u200crelated to Zhongrong \u200bor Zhongzhi.<\/p>\n<p>Most \u200dcompanies either said they did not own such products or had not responded.<\/p>\n<p>Topsperity Securities said roughly 60 \u2063companies had disclosed that\u2064 they \u2062owned\u2062 Zhongrong\u2019s trust products, and \u200ba majority of them were small companies with \u200bless than 10 billion yuan of market value.<\/p>\n<p>The broker\u2019s\u200c analysts\u200c say default in some products \u201cdoesn\u2019t mean overall risk in the trust\u2062 industry.\u201d<\/p>\n<p>\u201cIt\u2019s more like emotional disturbance, \u2063while there may be <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/build-back-better-critics-accounting-gimmicks-additional-irs-enforcement-hiding-real-cost-to-americans\/\" title=\"\u2018Build Back Better\u2019 Critics: Accounting Gimmicks, Additional IRS Enforcement Hiding Real Cost To Americans\">short-term impacts<\/a> on \u200dthe finance sector and a few companies involved,\u201d they\u200d said.<\/p>\n<p>($1 = 7.2937 Chinese yuan renminbi)<\/p>\n<p>  (Reporting by Jason \u2062Xue in Shanghai\u2064 and Tom Westbrook in Singapore; editing by\u200c Tomasz Janowski\u2062 and Jason Neely)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/zhongrong-trusts-missed-payments\/attachment\/investors-look-at-an-electronic-board-showing-stock-information-at\/\"><\/a><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><h2>President Biden&#8217;s \u2063Response to Maui Disaster Raises Eyebrows<\/h2>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><h2>Criticism Mounts Against President Biden&#8217;s Handling of Major Issues<\/h2>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><h2>Trump Indictment, Maui Wildfires, and Vivek Ramaswamy&#8217;s Performance Dominate Headlines<\/h2>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><h2>Trump Promises Irrefutable Report,\u200c Brian Kemp Assures Secure Georgia \u200cElections<\/h2>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><h2>Tencent Holdings Reports\u2063 Smaller-Than-Expected\u200d Rise in Q2 Revenue<\/h2>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><h2>Two Pinterest Directors Resign from Nextdoor&#8217;s Board\u200b Amidst Legal Battle<\/h2>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><h2>PayPal to Halt Cryptocurrency Purchases for \u2063UK Customers<\/h2>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>about their potential risks and losses related to Zhongrong International Trust Co. The trust company&#8217;s payment defaults have raised concerns of a wider financial crisis in China, prompting worried retail investors to seek clarity from listed companies regarding their exposure to the troubled firm. Over 100 inquiries have been sent through investor relation platforms to Shanghai and Shenzhen-listed companies.<\/p>\n","protected":false},"author":66,"featured_media":2002421,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[],"class_list":["post-2002420","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2002420","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2002420"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2002420\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2002421"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2002420"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2002420"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2002420"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}