Chinese Shadow Bank Misses Out On Dozens Of Payments With The Spread In Fallouts
Zhongrong International Trust Co. missed out on payments on a dozen products, and has zero instant ideas to make the clients whole, stipulating issues at the embattled Chinese shadow bank are way deeper than what they were previously known.
Wang Qiang, the Board Secretary of the firm that is partly owned by the finance giant Zhongzhi Enterprise Group Co. said to the investors in a meeting previously this week that the company missed out on the payments over a product batch on the 8th of August, which delayed at least 10 others since the late of July.
“At least 30 products are now overdue and Zhongrong also halted redemptions on some short-term instruments,”
one of the people commented.
“The company doesn’t have an immediate plan to cover the payments since its short-term liquidity has suddenly dried up,”
Wang added. He further added that the quantity of products that have missed payments has increased, and the organization is facing a “tsunami” of interrogations from the investors and their own financial managers as per the people who refuse to be identified as the meeting was supposedly private.
Wang has requested patience as the organization looks forward to recovering the value of its investments
“The increased delays signal that the troubles at Zhongzhi, which manages $138 billion, are deeper than initially thought as only three clients so far have publicly revealed missing payments by the two firms. Chinese authorities have already set up a task force to study any possible contagion, with the banking regulator examining risks at Zhongzhi,”
as per the people familiar with the issue.
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