Zhongzhi-Linked Trust Company Fails to Repay Maturing Products

Two clients of Zhongrong International Trust Co. Ltd. announced that the Chinese financial institution has failed to repay maturing trust products they had purchased, following online rumors linking the failure to its embattled shareholder, investment giant Zhongzhi Enterprise Group Co. Ltd.

Nacity Property Service Co. Ltd. (603506.SH) said it had invested 30 million yuan ($4.1 million) in a trust product sold by Zhongrong, but has not received any principal or earnings after the product matured earlier this week, according to a filing with the Shanghai Stock Exchange on Friday. The property manager noted the risk of not being able to recoup all the money.