China Trust ‘Timebomb’ Ticks as Credit Suisse Sees Rejig

The threat of financial contagion posed by a repayment bulge this year for China’s trust funds has been delayed rather than dealt with, industry data suggest.

Credit Suisse Group AG, analyzing figures from Chinese data provider Wind Information Co., estimates policies are due to repay 1.5 trillion yuan ($242 billion) in the first quarter of next year, compared with the about 1.3 trillion yuan this quarter. Nomura Holdings Inc. also predicts the maturity peak, at about 1 trillion yuan, is now more likely to come in 2015 than this quarter.