Another Chinese ‘Wealth Management’ Product Bites The Dust

A Reuters report last week said China’s Evergrowing Bank may have to make good on guarantees it issued on a principal amount 3.7 billion yuan and 300 million yuan of interest dues on an off-balance sheet, wealth management product issued by one of its shareholders and an affiliate. How the entities deployed the funds is not known, but evidently the investments have turned sour. Evergrowing Bank received funds amounting 1 billion yuan from The Bank of Tianjin and 2.7 billion yuan from Tianjin Binhai Rural Commercial Bank under this wealth management scheme. Evergrowing’s guarantees may now be invoked by these…