Cedar Trust’s financial crisis has no impact on business, say two units at the Shenzhen Stock Exchange

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(Yicai Global) Feb. 15 — Two subsidiaries of an indebted trust company run by Chinese conglomerate Cedar Holdings are operating normally, the companies said in response to a letter from the Shenzhen Stock Exchange questioning a sharp drop in share price. of their action on February 11.

Zibo Qixiang Tengda Chemical stock price [SHE:002408] was trading up 3.08% at 9.36 CNY (1.50 USD) at 12:30 p.m. today. While the shares of Cedar Development [SHE:002485] rose 0.72% to CNY 4.18.

Cedar International Trust failed to make payments of 20 billion yuan ($3.1 billion) scheduled for the end of January, according to a report by financial media outlet Caixin on Feb. 10.

The following day, Cedar Development’s share price fell 7.9% and Qixiang Tengda’s 5.2%, prompting the Shenzhen Stock Exchange to issue a letter of inquiry.

Cedar Holdings is taking steps to resolve payment for overdue wealth management products, rubber and other chemical maker Qixiang Tengda said yesterday. Qixiang Tengda shares the same owner, Zhang Jin, with Cedar Holdings.

The trust has bad debts of 2.15 billion CNY (338.4 million USD), but these loans have not yet expired and there is no need to renew them, added the company based in Zibo, in the province. northeastern province of Shandong.

Cedar Development will not be affected because despite sharing an owner with Cedar International Trust, it is a completely different legal entity, with separate assets, staff and businesses, the cultural tourism developer said. based in Guangzhou.

Cedar Development is 70% owned by Guangzhou Cedar Culture Tourism Investment. Some 373 million shares out of 382 million have been pledged and there is no risk of liquidation of these pledged shares at this time, he added.

Editor: Kim Taylor

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