has recently made unwelcome headlines, as one of the shadow banking
system's countless 'wealth management trusts' which was evidently
invested in a bankrupt venture (in this case in a coal company –
reportedly a great many such investments in insolvent coal mines exist)
was about to go belly-up and then was bailed out at the last minute.
Here is a recent article by Mish on the trust that was ironically named “Credit Equals Gold Number 1”.
At first it was reported that the trust wouldn't be bailed out, but in
the end its 700 investors were able to 'breathe a sigh of relief' as Tom Holland remarked in the South China Morning Post (SCMP).
However, Holland also cautioned that by bailing out this trust, China
has laid the foundations for a much bigger crisis down the road, as
moral hazard has increased considerably as a result.
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