with the CSI 300 Index down 1.5 per cent at 11.05am local time, while the Hang Seng China Enterprises Index tumbled 2.9 per cent. The yuan was 0.3 weaker at 7.261 per US dollar.
The trust industry, once seen a safe place by wealthy Chinese to park their money for hefty returns, has over the past years been a growing concern for authorities who have sought to rein in its scope. The industry has been plagued by missed payments over the past years, in particular on investments related to real estate.
Another listed company said on Friday that payments on one wealth product it bought from a Zhongzhi unit had become overdue this month and it will take legal measures to recover investment losses. The trust company alone has 270 products totaling 39.5 billion yuan due this year, according to data provider Use Trust. The average yield on those products amounted to 6.88 per cent, compared with the benchmark 1.5 per cent one-year deposit rate paid by banks.