Elderly retirees face big losses after Chinese trust goes bust, reflecting turbulent economy

By DAKE KANG
Associated Press

CHENGDU, China (AP) — Some investors in a troubled Chinese trust fund are facing financial ruin under a government plan to return a fraction of their money back. They are casualties of China’s broader troubles as the financial industry is squeezed by a slump in the property industry that has added to factors dragging on the economy. Sichuan Trust announced it was insolvent in 2020, the result of sketchy accounting and big investments that went bust as the economy slowed. The trust’s troubles illustrate a broader dilemma facing China’s ruling Communist Party, as officials look to revive the economy while dealing with debt and an ailing property sector.