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China trust firm says reached agreement to resolve troubled shadow-bank product -source
January 27, 2014 / 7:20 AM / 4 years ago

China trust firm says reached agreement to resolve troubled shadow-bank product -source

SHANGHAI, Jan 27 (Reuters) - China Credit Trust Co Ltd said on Monday that it had reached an agreement with investors regarding a troubled high-yielding investment product due to mature on Jan. 31, according to a notice to investors obtained by Reuters on Monday.

The announcement appears to mark an end to the closely-watched saga surrounding the high-yielding 3 billion yuan ($495.97 million) trust product, called “2010 China Credit / Credit Equals Gold #1” and marketed through branches of Industrial and Commercial Bank of China .

Market watchers said that if default had occurred, it would have marked a landmark precedent, shattering the widespread perception of implicit guarantees on high-yielding investment products in China’s shadow banking sector.

“Currently, the trustee has already reached agreement with investors. Please get in touch with your client manager as soon as possible,” the notice said. It did not directly state that investors will get paid on time when the product matures.

$1 = 6.0488 Chinese yuan Reporting by Gabriel Wildau

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