Exclusive: Anxin Trust Restructuring Imminent as Debts Mount

Caixin Global | Mar 25, 2020 at 8:52 PM
  • A financial restructuring of troubled Anxin Trust Co. Ltd. is in the process of being finalized, sources have told Caixin, as the Shanghai-listed company asked for its shares to be suspended for one day on Wednesday because of “significant uncertainties” regarding a “significant item” that need to be investigated.
  • A second consecutive year of losses will trigger “special status” (SRT) designation, meaning its stock ticker will be tagged ST to warn investors that the company carries significant investment risk and its financial performance has been poor.
  • Bank of China will buy 2.87 billion shares from Shanghai Gorgeous Investment and, following the pattern of other state-backed bailouts, it is likely that Bank of China’s asset management subsidiary BOC Financial Asset Investment Co. Ltd. will send a team in to take over the company’s operations.