Ping An Trust delays payment due to property market downturn
PING An Trust, a subsidiary of China’s Ping An Insurance, said that it has failed to repay a trust product on time “due to the overall downturn in the property market”.
It delayed repayment of its “Funing 615“ trust plan, it said in a statement on Wednesday (Apr 10).
The firm said that it is actively following up on the project development, sales and the return of funds of the underlying real estate project, and is filing a lawsuit against the property developer Zhenro Properties Group.
Its overall performance remains stable and its business conditions are sound, it added.
The trust product matured on March 29 and was launched in September 2021. It raised 772 million yuan (S$144 million), state media Securities Times reported.
Ping An Trust reported 14.55 billion yuan in revenue last year and had 662.5 billion yuan of assets under management at the end of last year, according to Ping An’s financial report.
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Its missed payment adds to signs of spreading stress in a financial market dragged down by a property crisis. China’s highly indebted property sector has been reeling from a liquidity crunch since 2020. Defaults by developers since late 2021 have impeded economic growth and rattled global markets.
Wealth manager Zhongzhi Enterprise Group in January filed for bankruptcy liquidation after failing to repay debt, as the firm grappled with the deepening property market downturn. REUTERS
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