ICBC Gold Product – Bank Collapse or Isolated Case?
Here are five reasons why a financial crisis caused by a trust default is unlikely.
China’s largest bank, ICBC, formally declared it would not support a 3 billion yuan bankrupt trust investment product the bank sold through its branches. The Wealth Management Product (WMP), called the “Credit Equals Gold No. 1,” raised funds for a coal mine and is due for repayment January 31. The announcement brought a mild panic to China’s financial community and among overseas investors.