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Ping An Insurance Co’s trust business delayed repayment on a property-linked investment product. It apologized to investors yesterday for postponing the payment and blamed the overall downturn in the property sector. The company added that it will be suing Zhenro Properties and is actively looking for ways to recover investors’ money. The trust had earlier raised RMB 772mn ($107mn) in 2021 to fund a property project, which matured last month, according to news outlet Securities Times. Though the delayed payment is not sizeable, it highlights the stress built up in China’s trust companies as a consequence of the downturn in the real estate sector. For instance, a large private wealth player, Zhongzhi Enterprise filed for bankruptcy earlier this year.
Ping An’s bonds traded stable with its 2.5% 2024 at 97.8 cents on the dollar, yielding 8.65%
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