China Rong Trust, a subsidiary of China ’s largest asset management company, has been exposed to nearly 100 million yuan (RMB, Same as S $ 18.68 million) overdue.The State Administration of Management has established a working group last month to evaluate the unprepared debts and risks of Zhongrong Trust.
Bloomberg Society on Monday (August 14) quoted anonymous insiders that China ’s regulators requested that China Rong Trust reported its future payment plan and disposable assets to cope with liquidity tightening.One of the people familiar with the matter said that nearly half of the funds raised by Zhongrong have flowed into its parent company or related company.
The State Administration of Finance and Administration of China, Zhongrong Trust, and Zhongzhi Group did not respond to Bloomberg's comment request.
According to previous reports, Zhongrong Trust was confirmed to be overdue last week.The cumulative overdue amount is nearly 100 million yuan.
Because there are rumors that the overdue overdue of Zhongrong Trust is related to the liquidity crisis of Zhongzhi Group, it has also aroused concerns about other trust companies.
Zhongzhi is a financial giant covering a trust company, private equity and wealth management, and manages assets as much as 1 trillion yuan.Zhongzhi Group is also the second largest shareholder of Zhongrong Trust, with a shareholding of about 33%.
The annual report data from Zhongrong Trust shows that among the 629 billion yuan trust assets managed, real estate accounts for 11%, industries account for 42%, and financial institutions account for 33%.Earlier, the company had also fined 200,000 yuan by the Chinese regulatory department for lack of relevant approval real estate projects and promised to improve compliance.
