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Jilin Trust default raises specter of more in coal industry

Updated: 2014-02-21 07:18
By Xie Yu in Shanghai ( China Daily)

The fallout from the Jilin Trust default is spreading, and experts have warned of more default risks occurring in industries such as coal mining.

Songhuajianghao, a trust product designed by the northeast China-based Jilin Trust and backed by a coal company called Shanxi Liansheng Energy, failed to meet redemption on Wednesday, missed payments for the fifth time and pushed its default volume to 872.7 million yuan ($143.5 million).

The product was issued to clients of China Construction Bank, China's second-largest lender, and raised 972.7 million yuan in six issuances starting in 2011.

Jilin Trust default raises specter of more in coal industry

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