BEIJING: Trust firms that have issued at least US$5bil (RM21bil) in high-yield products linked to China Evergrande Group are bracing for a cascade of losses after the cash-strapped developer said it may no longer be able to meet its financial obligations.
At least three firms, including Citic Trust Co, China Foreign Economy and Trade Trust Co and National Trust, notified clients over the past few days that they risk missing payments on Evergrande products due to the developer’s strained finances and will take legal action to protect investors, people familiar with the matter said, asking not to be named discussing private deliberations.