China’s Banking Regulator Agrees to Bankruptcy Proceedings for Xinhua Trust

176

The China Banking and Insurance Regulatory Commission (CBIRC) has just given the green light to bankruptcy proceedings for a capsized trust company that it took over more than two years ago.

On 6 July CBIRC officially announced that it had given its approval for Xinhua Trust Share Co., Ltd. (新华信托股份有限公司) to enter bankruptcy proceedings.

Xinhua Trust is one of six companies taken over by CBIRC on July 2020, including Tian’an Property Insurance (鉴于天安财产保险股份有限公司), Huaxia Life Insurance (华夏人寿保险股份有限公司), Tianan Life Insurance (天安人寿保险股份有限公司), Yi’an Property Insurance (易安财产保险股份有限公司), and Xin Shidai Trust (新时代信托股份有限公司).

According to documents from the Chongqing banking regulator, as of 2015 Xinhua Trust’s registered capital was 4.2 billion yuan, while Shanghai Shanhujiao Information Systems (上海珊瑚礁信息系统有限公司) held a 40% share of equity, Shanghai Jihui Asset Management Co., Ltd. (上海纪辉资产管理有限公司) a 21.43% share, and Xin Chanye Investment Share Co., Ltd. a 17.33% stake.