Indeed, writing for Forbes, Gordan Chang reports that “it should be no mystery why this investment, known as “2010 China Credit-Credit Equals Gold #1 Collective Trust Product,” is on the verge of default.” China Credit Trust loaned the proceeds from sales of a half billion dollars of product to an unlisted coal mining group. The coal company is, according to Chang, probably paying upwards of 12% for the money as it was desperate for money given that it has already been declared bankrupt. There has never been a default in a Chinese wealth management product other than some delayed payments. Besides being the first, this one could be a sign of things to come. bastiat.mises.org/2014/01/chinas-coming-default/
Posted on: Mon, 20 Jan 2014 20:50:44 +0000
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