Zhongrong Trust acknowledged late Friday that it had missed payments on some products, and said it would bring in two large state-owned trust companies to help with operations and management. “Due to multiple internal and external factors, some of the company’s trust products could not be paid on schedule," it said. Zhongrong Trust said it has engaged CITIC Trust, owned by state conglomerate CITIC Group, and CCB Trust, owned by China Construction Bank, to work with it for a year. Some of these trust products invest in bank deposits, stocks, corporate bonds and other kinds of wealth-management products. Trust funds also have larger exposures to financial markets, which increases the risk of contagion, they said.

Source: Wall Street Journal September 16, 2023 12:41 UTC