New default woes for China Credit Trust

Investors become cautious about the market, industry index indicates

A 1.3 billion yuan ($209.68 million) trust product has delayed repayments, pointing to the deteriorating health of China's trust industry, which is scheduled to repay investors more than 250 billion yuan in the remaining months of the year.

The Beijing-based China Credit Trust Co Ltd delayed payments on a trust product backed by coal-mining assets after it failed to raise funds to repay investors. The trust repayment was scheduled to occur on Friday, but there was only 61,538 yuan left in the trust as of the end of June, according to the trust's disclosure to its investors.