FINANCE

Chinese Trust Firm Enters Bankruptcy Reorganization After Years of Turmoil

Published: Mar. 3, 2026 4:28 p.m. GMT+8

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About five years after its chairman attacked the general manager with a hammer, Huaxin Trust Co. Ltd. has entered bankruptcy reorganization.

A court approved the restructuring in November, making Huaxin — based in the northeastern city of Dalian — the third trust company in China to undergo formal bankruptcy proceedings, after New China Trust Co. Ltd. and Sichuan Trust Co. Ltd.

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Huaxin Trust Co. Ltd. entered bankruptcy reorganization in November, becoming the third Chinese trust to do so.
Over 3,100 creditors filed claims totaling nearly 13.2 billion yuan ($1.9 billion), with a repayment plan aiming for about 90% of principal for retail investors.
The company faced issues after 2020 regulatory changes, leading to a 2021 assault by its chairman, who was later sentenced to 11 years in prison.

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Who’s Who

Huaxin Trust Co. Ltd.: Huaxin Trust Co. Ltd. has entered bankruptcy reorganization following approval in November, making it the third Chinese trust company to undergo such proceedings. Over 3,100 creditors filed claims totaling nearly 13.2 billion yuan ($1.9 billion). The company faced a 7-billion-yuan shortfall in 2020. Its former chairman was sentenced to 11 years for attempted murder related to asset disputes.

New China Trust Co. Ltd.: New China Trust Co. Ltd. is one of three trust companies in China to undergo formal bankruptcy proceedings, according to the article. It has entered bankruptcy reorganization, predating Huaxin Trust Co. Ltd. in this process. No further details about New China Trust Co. Ltd. are provided in the article excerpt.

Sichuan Trust Co. Ltd.: Sichuan Trust Co. Ltd. is one of three trust companies in China, alongside Huaxin Trust Co. Ltd. and New China Trust Co. Ltd., to undergo formal bankruptcy proceedings. The article does not provide further specific details about Sichuan Trust Co. Ltd. beyond this fact.

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