China Shadow Bank’s Missed Payments Show Growing Property Stress
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Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000A $3 billion redemption crisis in eastern China is reviving concerns about the loosely-regulated shadow-banking industry as the nation’s prolonged property slump risks spilling over into the financial sector.Investors holding some 20 billion yuan ($2.8 billion) in wealth management products sold through Hangzhou-based Zhejiang Zhejin Asset Operation Co. failed to receive payments due in late November, according to people familiar with the matter. The products’ underlying assets were debt claims of property developers affiliated with Sunriver Holding Group Co., documents seen by Bloomberg News show.