Despite these tremors, Zhongrong boasts Rmb629bn in assets, uniquely standing out with over 10% exposure to real estate. A recent revelation saw Zhongrong acknowledging its payment hiccups, revealing a pact with Citic Trust and China Construction Bank Trust for “entrusted management services”.
The grandeur of China’s trust industry is immense—with 68 entities, assets touching Rmb21tn, and Rmb1.1tn direct exposure to realty. However, the true exposure might eclipse these figures, with bonds often acting as a wildcard, according to analysts.
Voices from Zhongrong, Sunac, Evergrande, China Fortune Land Development, Yango, Xi’an’s government fund, and Zhejiang Jihua remain eerily silent on this matter.
