World
Elderly retirees face big losses after Chinese trust goes bust, reflecting turbulent economy
CHENGDU, China (AP) — Some investors in a troubled trust fund in China are facing financial ruin under a government plan to return a fraction of their money, casualties of a slump in the property industry and a broader economic slowdown.
Sichuan Trust, headquartered in the southwest city of Chengdu, announced it was insolvent in 2020, stricken by sketchy accounting and failed investments in shopping malls and other projects. A deadline earlier this month to accept a 20%-60% “haircut” or loss on their investments has left some investors in deep financial trouble, according to public announcements and AP interviews with five people affected.
China’s economy, the world’s second largest, depends heavily on real estate development to drive growth and create jobs. Property prices and sales have languished after a crackdown on what leaders viewed as dangerous levels of borrowing, causing dozens of developers to default on their debts.
At the National People’s Congress session in Beijing last week, officials pledged to do more to protect investors. Premier Li Qiang said China would work to control risks and resolve the property crisis.
For the people who put their life savings into Sichuan Trust and similar entities, it’s likely too late. Around 300 of more than 8,000 investors refused to accept a government plan and are looking for legal help, a relative of one investor said. A few who attempted to come to Beijing during the congress to air their grievances were blocked by police, the relative said.
The ruling Communist Party faces a dilemma: Debt is a problem, but falling home prices lead people to scrimp on spending. That squeezes companies’ sales, so they lay off workers and cut back on investment. The result: slowing growth and less wealth to go around.
Inevitably, someone will end up losing out as China’s debt crisis unwinds, said Tsinghua University finance professor Michael Pettis.
“Nobody wants to absorb the loss. If you assign it to households, you weaken consumption even more,” Pettis said. “It’s got to be assigned. And that’s the political problem.”
Trusts are a cross between a bank and an investment fund. Some advertised their offerings as reliable, high interest government-backed accounts. They’re actually private entities that fund projects like factories and shopping malls. Weak disclosure requirements allowed them to use money from new investors to pay what they owed earlier ones, a set-up somewhat like a Ponzi scheme.
“Financial supervision was relatively loose in the past, so the design of these products, including systems for protecting investors’ rights and interests, had serious issues,” said Zhu Zhenxin, chief analyst at Rushi Finance Institute in Beijing. “If underlying assets of financial products won’t generate enough returns to pay such high interest rates, default is inevitable.”
The troubles at Sichuan Trust first surfaced when the government began restricting new sales of trust products in 2020. Without revenue from new investors, it couldn’t pay its outstanding debts.
That summer, Sichuan Trust announced it had 25.3 billion RMB ($3.5 billion at the time) in debts it couldn’t repay. The provincial government and banking regulators took control, ousting the management, reorganizing its books and launching an investigation.
Hundreds of investors staged weekly protests outside the company’s headquarters and their losses became a political issue.
In 2021, police detained Sichuan Trust’s majority shareholder Liu Canglong, a mining and real estate tycoon who was once the richest man in Sichuan, a province of more than 80 million people. He is accused of embezzling trust funds.
In December, the trust announced it would return investors’ funds according to a sliding scale of the original investment. The larger the investment stake, the larger the loss.
That sparked more protests.
“We’re extremely anxious,” one investor who asked not to be named told The AP. “It’s so cruel, the amount of money they’re giving us is so little.”
A person answering Sichuan Trust’s hotline said the company does not take interviews and would not provide comment. Sichuan Trust, the Sichuan provincial government and the China Banking and Insurance Regulatory Commission did not respond to faxed and emailed requests for comment.
The plan to return funds “appropriately favors small and medium-sized investors,” Sichuan Trust said earlier in a public statement, calling it “fair.”
Those protesting fear say they’ve been harassed and intimidated, subjected to police interrogations and threats from their children’s employers. They’ve been barred from leaving Chengdu or, at times, their housing compounds.
On a recent visit to the company’s headquarters, dozens of uniformed officers, half a dozen police vehicles and an empty bus were parked outside. More than a dozen plainclothes agents who refused to identify themselves followed two AP journalists around.
Earlier, a Dutch journalist was shoved to the ground and forced into a police vehicle when he attempted to approach protesting investors.
“They abduct you, they threaten your children,” said another investor, who also did not want to be identified due to fears of more police harassment. “They have so many dirty tricks.”
Analysts say investors were bound to suffer big losses given the size of Sichuan Trust’s debts. Chinese media have reported on the problem, but focused on alleged wrongdoing by those who ran the trust, presenting the repayment plan as a fair solution.
Some of the more than 95% of investors who signed off on the plan said they agreed under duress and were threatened with bigger losses if they didn’t meet a March 5 deadline.
Trusts have a high minimum investment — for Sichuan Trust it was generally 300,000 yuan ($42,000) — and many people believed mostly the relatively well-off were affected.
However, some investors were retirees who said they met the investment threshhold by collecting money from friends and relatives who now want their money back. For them, Sichuan Trust’s default is a calamity.
“They’re so poor, they don’t have money to spend,” said a relative of investors who lost money to the trust. “They don’t have money for medical treatment. They have to borrow money to survive.”
Those interviewed said the name Sichuan Trust led them to believe it was a trustworthy financial institution like a bank, with a steady, fixed interest rates, rather than a risky investment fund. They were attracted by the 8% or 9% interest rates it promised – multiple times higher than traditional savings accounts. Some financially unsophisticated retirees invested large chunks of their life savings.
“The country said trusts are very safe, like banks,” one of the people said. “We didn’t think there would be problems.”
Instead of enjoying their retirements, two of the people said, they’ve had to borrow money from relatives and cut back on their expenses.
“We ordinary people are miserable,” another investor said. “The corruption is so serious.”
China’s roughly $3 trillion trust sector is part of a large “shadow banking” industry in the country, which for decades supplied credit to entrepreneurs and households not served by the state-run banking system. Concerned over speculation and illegal practices, authorities have tightened controls. In 2020, regulators declared victory in cleaning up China’s online peer-to-peer lending industry, or P2P.
Wealth management companies also have gotten into trouble.
“We believe risks could increase, potentially affecting more financial-sector entities, if China’s economic recovery continues to lose momentum and the property sector’s distress is sustained,” Fitch Ratings said in a report after the collapse of another big trust company, Zhengrong.
Officials and analysts say crackdowns have been necessary, but investors footing the bill are questioning how they’ve been carried out.
“I support the Communist Party very much,” one of the investors said. “But some people are blackening the Party’s name.”
___
AP Business Writer Elaine Kurtenbach contributed to this story.
World
‘God of War’ Creator Says TV First Look Is ‘So Dumb’ and ‘Terrible’: Looks Like He’s ‘S—ing in the Woods’
David Jaffe, the creator of the “God of War” video games, took to his YouTube channel on Saturday to slam the first look image from Amazon Prime‘s upcoming “God of War” TV show. He said the frame, which features franchise hero Kratos in the woods with his son, was “so bad in so many ways.”
“I’m sure everybody’s trying real hard, [but] it’s so dumb,” Jaffe said. “But let’s be incredibly clear, okay? Two things can be true. This can be a terrible image, and it is. It’s so bad in so many ways, which we’ll talk about in a moment. And Ron Moore is awesome, who is the showrunner… This guy is a juggernaut of a talented fellow. I have absolutely no doubt it is going to be a good show.”
Jaffe added that he doesn’t mind that star Ryan Hurst isn’t a dead ringer for Kratos, but instead takes issue with his expression and pose in what he described as a “dumb fucking image.”
“Kratos in this pose with this expression, not the guy’s face, but this expression, he just looks stupid,” Jaffe explained. “If you’re going to reveal, to most people, a brand new character that you hope is going to carry your series, for the first time, and they’ve never really seen this before, and this is the way you introduce them?”
He continued, “Maybe that’s conscious. Maybe they’re like, ‘Well, what we really want to focus on is the father-son story. And if we focus on him being like, Spartan rage, and all that, maybe people are like, “I don’t want to watch that show.”’ Ok maybe. But then, at that point, could you find a picture that doesn’t look like he’s shitting in the woods? Cause that’s what the picture looks like.”
Amazon Prime unveiled the first look photo on Feb. 27. Along with Hurst as Kratos and Callum Vinson as his son, other cast members include Max Parker as Heimdall, Ólafur Darri Ólafsson as Thor, Mandy Patinkin as Odin, Alastair Duncan as Mimir, Danny Woodburn and Jeff Gulka as brothers Brok and Sindri and Ed Skrein as Baldur.
Watch Jaffe’s entire reaction below.
World
Iran nuclear talks ‘didn’t pass the smell test’ before Trump launched strikes, says Vance
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Vice President JD Vance confirmed Monday that negotiations with Iran over its nuclear program collapsed after U.S. officials concluded Tehran’s claims “did not pass the smell test,” prompting President Donald Trump to authorize Operation Epic Fury.
Speaking on “Jesse Watters Primetime,” Vance said U.S. envoys — including Steve Witkoff, Secretary of State Marco Rubio and Jared Kushner — had conducted rounds of “deliberate” talks in Geneva with the Iranian delegation.
The discussions were aimed at curbing Tehran’s nuclear program in exchange for sanctions relief and averting a broader conflict, he said, but ultimately broke down.
“But the Iranians would come back to us and they’d say, ‘Well, you know, having enrichment for civilian purposes, for energy purposes, is a matter of national pride,’” Vance said.
Omani Foreign Minister Badr al-Busaidi, President Donald Trump’s Special Representative for the Middle East, Steve Witkoff and U.S. negotiator Jared Kushner meet ahead of the U.S.-Iran talks, in Muscat, the capital of Oman, on Feb. 06, 2026. (Oman Foreign Ministry/Anadolu via Getty Images)
“And so we would say, ‘OK, that’s interesting, but why are you building your enrichment facilities 70 feet underground? And why are you enriching to a level that’s way beyond civilian enrichment and is only useful if your goal is to build a nuclear bomb?’” he said.
“Nobody objects to the Iranians being able to build medical isotopes; the objection is these enrichment facilities that are only useful for building a nuclear weapon,” Vance clarified.
“It just doesn’t pass the smell test for you to say that you want enrichment for medical isotopes, while at the same time trying to build a facility 70 to 80 feet underground,” he explained.
TRUMP DECLARES ‘I GOT HIM BEFORE HE GOT ME’ AFTER IRAN’S SUPREME LEADER KILLED IN STRIKE
This image from video provided by U.S. Central Command shows a missile being launched from a U.S. Navy ship in support of Operation Epic Fury on Saturday, Feb. 28, 2026. (U.S. Central Command via AP)
Vance spoke as Operation Epic Fury ended its third day. Launched on Feb. 28, U.S. and Israeli forces carried out coordinated precision strikes deep inside Iran aimed at crippling Tehran’s missile arsenal and nuclear infrastructure.
A key issue had been Iran enriching uranium to high levels, including material around 60% purity — a fraction of weapons-grade but far above limits set under the 2015 nuclear deal — keeping international alarm high over proliferation risks.
“We destroyed Iran’s ability to build a nuclear weapon during President Trump’s term,” Vance told Watters. “We set them back substantially. But I think the President was looking for the long haul,” he said.
“Trump was looking for Iran to make a significant long-term commitment that they would never build a nuclear weapon, that they would not pursue the ability to be on the brink of a nuclear weapon.”
FIRES RAGE AT IRAN’S BANDAR ABBAS NAVAL HEADQUARTERS, STRAIT OF HORMUZ TRAFFIC STALLED
Vice President JD Vance speaks with Breitbart News Washington bureau chief Matthew Boyle at Andrew W. Mellon Auditorium, Nov. 20, 2025, in Washington. (Julia Demaree Nikhinson/AP Photo)
“He wanted to make sure that Iran could never have a nuclear weapon, and that would require fundamentally a change in mindset from the Iranian regime.”
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“The President is not going to rest until he accomplishes that all-important objective of ensuring that Iran can’t have a nuclear weapon, not just for the next few years, not just because we obliterated for dough or some other.”
“There’s just no way that Donald Trump is going to allow this country to get into a multiyear conflict with no clear end in sight and no clear objective,” Vance added while describing that the administration would prefer to see “a friendly regime in Iran, a stable country, a country that’s willing to work with the United States.”
World
Unexpected birth brings hope to near-extinct Amazon tribe
Pugapia and her daughters Aiga and Babawru lived for years as the only surviving members of the Akuntsu, an Indigenous people decimated by a government-backed push to develop parts of the Amazon rainforest. As they advanced in age without a child to carry on the line, many expected the Akuntsu to vanish when the women died.
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That changed in December, when Babawru – the youngest of the three, in her 40s – gave birth to a boy. Akyp’s arrival brought hope not just for the Akuntsu line but also for efforts to protect the equally fragile rainforest.
“This child is not only a symbol of the resistance of the Akuntsu people, but also a source of hope for Indigenous peoples,” says Joenia Wapichana, president of Brazil’s Indigenous protection agency, known as Funai. “He represents how recognition, protection and the management of this land are extremely necessary.”
Protecting Indigenous territories is widely seen as one of the most effective ways to curb deforestation in the Amazon, the world’s largest rainforest and a key regulator of global climate.
Researchers warn that continued forest loss could accelerate global warming. A 2022 analysis by MapBiomas, a network of nongovernmental groups tracking land use, found Indigenous territories in Brazil had lost just 1 per cent of native vegetation over three decades, compared with 20 per cent on private land nationwide.
In Rondonia state, where the Akuntsu dwell, about 40 per cent of native forest has been cleared, and what remains untouched is largely within conservation and Indigenous areas. The Akuntsu’s land stands out in satellite images as an island of forest surrounded by cattle pasture as well as soy and corn fields.
In the 1980s, an agriculture push sparked attacks in Rondonia
Rondonia’s deforestation traces back to a government-backed push to occupy the rainforest during Brazil’s military regime in the 1970s. Around the same time, an infrastructure program financed in part by the World Bank promoted domestic migration to the Amazon, including the paving of a highway across the state.
In the 1980s, Rondonia’s population more than doubled, according to census data. Settlers were promised land titles if they cleared the forest for agriculture and risked losing claims if Indigenous people were present, fuelling violent attacks by hired gunmen on Indigenous groups such as the Akuntsu.
Funai made first contact with the Akuntsu in 1995, finding seven survivors. Experts believe they had numbered about 20 a decade earlier, when they were attacked by ranchers seeking to occupy the area. Funai agents found evidence of the assault, and when they contacted the Akuntsu, the survivors recounted what happened. Some still bore gunshot wounds.
The last Akuntsu man died in 2017. Since then, Babawru lived with her mother, Pugapia, and Aiga, her sister. The women, whose ages aren’t known for certain, have chosen to remain isolated from the non-Indigenous world, showing little interest in it.
In 2006, Funai granted territorial protection to the Akuntsu, establishing the Rio Omere Indigenous Land, which they have since shared with the Kanoe people. The two groups, once enemies, began maintaining contact, usually mediated by officials. The relationship is complex, with cooperation but also cultural differences and language barriers.
The Associated Press requested a facilitated interview with the women through Funai, but the agency didn’t respond.
Amanda Villa, an anthropologist with the Observatory of Isolated Peoples, says Akuntsu women depend on Kanoe men for tasks considered masculine, such as hunting and clearing fields. The two groups have also exchanged spiritual knowledge – the current Kanoe spiritual leader, for example, learned from the late Akuntsu patriarch.
But the most consequential development for the future of the Akuntsu may have occurred last year, when Babawru became pregnant by a Kanoe man.
Linguist Carolina Aragon is the only outsider able to communicate with the three women after years studying and documenting their language. She works closely with Funai, translating conversations almost daily through video calls. Aragon also supported Babawru remotely during her labour and was with her during an ultrasound exam that confirmed the pregnancy.
Aragon said Babawru was stunned by the news. “She said, ‘How can I be pregnant?’” Aragon recalled. Babawru had always taken precautions to avoid becoming pregnant.
Social collapse shaped the Akuntsu’s choices
The surviving Akuntsu women had decided they would not become mothers. The decision was driven not only by the absence of other men in their community, but also by the belief that their world was disorganised – conditions they felt were not suitable for raising a child.
“You can trace this decision directly to the violent context they lived through,” says Villa, the anthropologist. “They have this somewhat catastrophic understanding.”
The Akuntsu believed they could not bring new life into a world without Akuntsu men who could not only perform but also teach tasks the group considers male responsibilities, such as hunting and shamanism.
“A breakdown of social relations that followed the genocide shaped their lives and deepened over the years. That does lead people to think – and rethink – the future,” Aragon says. “But the future can surprise everyone. A baby boy was born.”
Aragon says the women were embarking on a “new chapter”, choosing to welcome the child and adapt their traditions with support from the Kanoe and Funai. Villa says the fact that the newborn is a boy creates the possibility of restoring male roles like hunter.
Researchers and officials who have long worked with the three women understood that protecting the territory depended on the Akuntsu’s survival as a people. They sought to avoid a repeat of what happened to Tanaru, an Indigenous man who was discovered after living alone and without contact for decades.
After the discovery, authorities struggled to protect Tanaru’s territory. After he died in 2022, non-Indigenous groups began disputing the land. Late last year, the federal government finally secured the area, turning it into a protected conservation unit.
Funai’s Wapichana says Babawru’s child “is a hope that this next generation will indeed include an Indigenous person, an Akuntsu, ensuring the continuity of this people.”
Through years of careful work, Funai secured territorial protection for the Akuntsu and helped foster ties with the Kanoe. The agency also arranged spiritual support from an allied shaman, allowing the women to feel safe bringing new life into the world after decades of fear and loss.
The Akuntsu form emotional bonds with the forest and with the birds. Now, they are strengthening those bonds with a new human life in their world.
“What kind of relationship will this boy have with his own territory?” Aragon says. “I hope it will be the best possible, because he has everything he needs there.”
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