China SCE and Shimao Units Miss $225 Million in Trust Payments

(Bloomberg) ― The main units of China SCE Group Holdings Ltd. and Shimao Group Holdings Ltd. missed payments on 1.6 billion yuan ($225 million) of trust borrowings, continuing a string of defaults by Chinese developers amid the industry’s liquidity crunch.

Xiamen Zhongjun Industrial Co., a unit of SCE and one of the guarantors, failed to repay its 50% share of a trust product that was due at the end of September, according to documents sent by the issuer Everbright Trust Co. to the product distributor that were seen by Bloomberg News. Xiamen Zhongjun and Shanghai Shimao Jianshe Co., the other guarantor, both had their bank accounts frozen by a court after Everbright Trust sued to seize assets, the documents showed.