CHINA Credit Trust Co. said yesterday that it had reached an agreement with investors regarding a troubled high-yielding investment product due to mature Friday, according to a notice to investors obtained by Reuters yesterday.
The announcement appears to mark an end to the closely watched saga surrounding the high-yielding 3 billion yuan (US$495.97 million) trust product, called “2010 China Credit/Credit Equals Gold #1” and marketed through branches of Industrial and Commercial Bank of China (ICBC).
Market watchers said that if default had occurred, it would have marked a landmark precedent, shattering the widespread perception of implicit guarantees on high-yielding investment products in China’s shadow banking sector.
“Currently, the trustee has already reached agreement with investors. Please get in touch with your client manager as soon as possible,” the notice said. It did not directly state that investors will get paid on time when the product matures.
ICBC said Friday it will help bail out investors in a troubled high-yield investment program, in a move that risks reinforcing the view among Chinese savers they are effectively insured against poor investment decisions.(SD-Agencies)
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