Beijing Rongdian and the ¥1 Billion Black Hole; Banks Hide Information on Trusts and WMPs

Back in January, Beijing Rongdian Investment company didn't pay up on its no. 12, 13 or 14 private placements (Chinese link). This was the ¥1 billion black hole.

Now, the police are investigating and there's another failure to pay, this time the no. 16 is busted. The company says it can repay 90% of the principal in three installments on April 20, May 20 and June 20.

Maybe this firm is particularly bad at picking investments, or maybe there are a lot more defaults coming.

Also, I noted before how the trust data stopped appearing weekly. It appears the banks are now hiding data on trusts and WMPs, according to 金牛理财, the firm that was reporting the data:
In fact, the information disclosure of financial products have been widely criticized. Despite repeated shouts CBRC required banks to strengthen information disclosure of financial products, banks have been doing is not good enough, not enough open, some of the bank's recent disclosure quality and even declined. For example, a bank last year also saw the effective yield for each maturity and financial functioning of the product in its official website, which expires this year, most of the products of the line product information to the purchaser only open from the outside world has been unable to public open channels for information. In addition, a quarter of China Merchants Bank announced financial products yield to maturity rate dropped significantly also very obvious example.

Take a wild guess as to what the numbers would show.

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