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
Emma Thompson’s ‘Down Cemetery Road’ Renewed for Season 2 at Apple TV
“Down Cemetery Road,” the Apple TV thriller series starring Emma Thompson and Ruth Wilson, has been renewed for a second season.
The news comes on the heels of the show’s Season 1 finale, which aired on Wednesday. Season 2 will “reunite Zoë Boehm (Thompson) and Sarah Trafford (Wilson) chasing down another twisted mystery,” according to a provided synopsis. “After a woman falls in front of a train Zoë is called in to investigate, but this seemingly simple case soon upends her life as she and Sarah find themselves navigating the glamorous but ruthless world of black market antiquities. Matters take a deadly turn when they stumble into the path of a brutal serial killer who will stop at nothing to cover up his crimes.”
Thompson also executive produces “Down Cemetery Road” alongside writer Morwenna Banks; Jamie Laurenson, Hakan Kousetta and Tom Nash at 60Forty Films; and Mick Herron, the author of the 2003 novel the show is based on. Börkur Sigþórssen (“Insomnia”) will serve as lead director for the second season.
“I’m so thrilled that ‘Down Cemetery Road’ has been enjoyed enough to warrant a second season,” Thompson said in a statement. “The thought of working with the team again, with wonderful Morwenna Banks in the writer’s seat and the indomitable Ruth Wilson who is the best and most brilliant co-star any aging Dame could desire, is frankly far more than I feel I deserve. Zoë Boehm is a punkishly delicious avatar and I can’t wait to pull on her knock-off Doc Martens again. Thanks to everyone who watched! We are go for the next one and it’s all down to you.”
Added Jay Hunt, creative director, Europe at Apple TV: “Audiences around the world fell in love with ‘Down Cemetery Road’ and I am glad the unlikely duo of Zoë and Sarah will be back with their unique form of acerbic wit.”
World
Israeli official issues stark warning after chilling Syrian military war chants surface
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A group of soldiers of the Syrian army was documented chanting a jihadi declaration of war on Israel during a military parade in Damascus on Tuesday, prompting a minister for the Jewish state to issue a chilling prediction.
Amichai Chikli, Israel’s minister of Diaspora Affairs, posted on X, “War is inevitable.” Chikli embedded a video from Visegrád 24 that showed Syria’s new army marching through Damascus. Syrian President Ahmed al-Sharaa attended the military parade.
The footage, according to Fox News Digital’s independent verification of the Arabic, showed them chanting “Gaza, Gaza, our rallying cry, Victory and steadfastness, night & day. We rise against you, enemy, we rise. From mountains of fire we make our way. From my blood I forge my ammunition. From your blood, rivers will flow.”
SYRIA’S NEW PRESIDENT TAKES CENTER STAGE AT UNGA AS CONCERNS LINGER OVER TERRORIST PAST
Military personnel perform during a military parade, as Syrians mark the first anniversary of Bashar al-Assad’s fall, in Damascus, Syria, Dec. 8, 2025. (Khalil Ashawi/Retuers)
In a statement to Fox News Digital about his posts on X, Chikli said, “The harrowing testimonies coming from our Druze brothers about what is happening in Sweida leave no doubt. A regime that kills like ISIS, rapes like ISIS, and destroys like ISIS everything that is not itself — it is ISIS, even if it wears a suit and plays basketball.”
The Trump administration is pushing for a security deal between Syria and Israel that would stabilize the heartland of the Middle East. Al-Sharaa met with Trump in the White House last month.
Speaking at a Jerusalem Post conference on Wednesday in Washington, D.C., Tom Barrack, who is U.S. ambassador to Turkey and special envoy to Syria, said Damascus is not interested in aggression toward Israel, according to the newspaper.
TRUMP TEASES ‘LOADING UP’ ABRAHAM ACCORDS WITH NEW NATIONS AFTER MIDDLE EAST SHAKEUP
Syria’s President Ahmed al-Sharaa delivers a speech on the first anniversary of Bashar al-Assad’s fall, in Damascus, Syria Dec. 8, 2025. (Khalil Ashawi/Reuters)
“Syria joining the anti-ISIS coalition was unthinkable not long ago.” Barrack said the U.S. and Syria have eliminated nine Hezbollah cells and several Islamic State cells over the past few weeks. “After Oct. 7, Israel doesn’t trust anyone,” he said at the event, adding “That’s why we’ve offered to serve as a peacekeeping force. Verification replaces trust.”
Barrack claimed Jerusalem sees Syria as “the softest play” in the complex Mideast security situation. “Syria has no alternative path,” he said. “And neither does Israel, if it wants to avoid perpetual military confrontation on every border.” He said the Abraham Accords, which normalized diplomatic relations between moderate Sunni states United Arab Emirates, Bahrain, Morocco and Israel, could be expanded to Syria.
U.S. Ambassador to Turkey and Special Envoy to Syria Tom Barrack, speaks during a press conference after his meeting with Lebanese President Joseph Aoun at the presidential palace, in Baabda, east of Beirut, Lebanon, Monday, Aug. 18, 2025. (AP Photo/Hussein Malla)
The Associated Press reported that al-Sharaa said at a conference over the weekend in Qatar that “There are currently negotiations, and the United States is participating and engaged in those negotiations.”
The Syrian president wants Israel to withdraw its forces from Syria and recommit to a 1974 truce agreement.
ISRAEL RELEASES BODY-CAM VIDEO OF DEADLY SYRIA RAID TARGETING MUSLIM BROTHERHOOD-AFFILIATED TERRORISTS
Israeli forces secure the area around Beit Jann after detaining two suspects and coming under fire in one of the most serious clashes on the Syrian front this year. (IDF)
Israel says it seized the 400-square-kilometer (155-square-mile) demilitarized buffer zone in southern Syria in a preemptive move to prevent militants from moving into the area after Islamist insurgents toppled Assad.
Israeli troops have regularly carried out operations in villages and towns inside and outside the zone, including raids snatching people it says are suspected militants. At least 13 people were killed in an Israeli operation against suspected terrorists last month.
When questioned about his record as an al Qaeda member (the U.S. scrapped its $10 million bounty for al-Sharaa’s arrest for terrorism last year) at the Doha Forum in Qatar, the Syrian president said: “What is the definition of terrorism or a terrorist? Saying that I was a terrorist and judging me as a terrorist is politicized… we saw wars in Afghanistan, in Iraq — all of those that were killed were innocent.”
TRUMP TO SIGN ORDER LIFTING SANCTIONS ON SYRIA
He added that “Judging people as terrorists needs to be proven. There’s been 25 years of us hearing this word in the world, but there’s a lot of confusion in understanding the word ‘terrorist.’ Terrorists, in my opinion, are those who kill innocent people — children and women — and who use illegitimate means to harm people.” He noted that he fought “honorably.”
Dan Diker, president of the Jerusalem Center for Security and Foreign Affairs, told Fox News Digital, “The ongoing security situation in Syria is of the utmost complexity. Israel and Syria, under U.S. mediation, are in highly intensive talks to reach a formal security arrangement between the two countries, while the Iranian regime and its proxies are engaging in armed subversion to prevent any possible agreement between the sides. The United States, CIA and military forces are reportedly deeply involved in securing and stabilizing the situation in Syria, which accounts for President Trump’s recent statements to Israel in helping maintain the framework in Syria.”
He added, “It must be emphasized that Iran’s Hezbollah proxy and associated cells and groups are doing everything to torpedo a security arrangement between the al-Sharaa government and the Israeli government. The Iranian regime and associated terror groups tried to assassinate al-Sharaa several times. They are mobilizing terror cells in southern Syria and sending them toward the Israeli border, which is what has triggered ongoing Israeli counterterrorism strikes, just like we saw in Bet Jinn.”
An Israeli army Merkava main battle tank crosses the barbed-wire fence into the U.N.-patrolled buffer zone separating Israeli and Syrian forces in the Golan Heights near the U.N. Quneitra checkpoint on March 2, 2025. ( Jalaa Marey/AFP via Getty Images)
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Israeli Prime Minister Benjamin Netanyahu recently visited reserve soldiers who were wounded in clashes with Syrian terrorists in Bet Jinn, where he said, “After Oct. 7, we are determined to defend our communities on our borders, including the northern border, and to prevent the entrenchment of terrorists and hostile actions against us, to protect our Druze allies, and to ensure that the State of Israel is safe from ground attack and other attacks from the border areas.”
He added, “What we expect Syria to do, of course, is to establish a demilitarized buffer zone from Damascus to the buffer zone area, including the approaches to Mount Hermon and the summit of Mount Hermon. We hold these territories to ensure the security of the citizens of Israel, and that is what obligates us. In a good spirit and understanding of these principles, it is also possible to reach an agreement with the Syrians, but we will stand by our principles in any case.”
World
Israel bombards areas across southern Lebanon in latest truce violation
Strikes hit hills and valleys as Israeli military keeps up pressure, it says, to force Hezbollah to disarm.
Israeli warplanes have carried out at least a dozen attacks across southern Lebanon, targeting what the military claims are Hezbollah training facilities in the latest flagrant near-daily violations that have further undermined a year-old ceasefire.
The raids hit hills and valleys in the Jezzine and Zahrani areas, including locations near al-Aaichiyeh, between al-Zrariyeh and Ansar, and around Jabal al-Rafie and the outskirts of several towns, according to Lebanon’s state news agency.
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Israel’s military said it struck a compound used by Hezbollah’s elite Radwan Force for weapons training, claiming the facilities were being used to plan attacks against Israeli forces and civilians.
Al Jazeera’s Zeina Khodr, reporting from Beirut described the ceasefire in Lebanon as “a one-sided truce, since Israel has continued near-daily attacks on the country.”
Khodr said the latest attacks avoided densely populated areas. “The locations were in hills and valleys, not population centres,” she said, noting this marked a repeated pattern.
“In fact, just a few days ago, in the middle of the night, they did the same thing.”
The Israeli military said it also hit what it said were rocket-launching sites and other infrastructure, describing the operations as necessary to counter what it deemed violations of understandings between Israel and Lebanon.
However, the continued bombardment has drawn sharp criticism from the United Nations, which reported in November that at least 127 civilians, including children, have been killed in Lebanon since the ceasefire took effect in late 2024. UN officials have warned the attacks amount to “war crimes”.
Khodr explained that the attacks form part of a sustained military pressure campaign.
“This is all part of military pressure on Hezbollah to force it to disarm,” she said. Israel wants the group “to give up its strategic weapons, its long-range weapons, its precision-guided missiles, its drones” which the Israeli military believes are stored in the Bekaa Valley and further inland.
But Hezbollah has sharply refused to relinquish its arsenal as long as Israel bombards and occupies parts of Lebanon. The group “doesn’t want to give up its weapons because it would view that as surrender”, Khodr added, noting that “Hezbollah and Lebanon do not have the upper hand. Israel enjoys air superiority.”
Tensions escalated further two weeks ago when Israel bombed Beirut’s southern suburbs, killing Hezbollah’s top military commander, Haytham Ali Tabatabai. The group has yet to respond, but said it will do so at the right time.
The attacks come as Lebanon and Israel recently dispatched civilian envoys to a committee monitoring their ceasefire for the first time in decades, a move aimed at expanding diplomatic engagement.
However, Hezbollah leader Naim Qassem criticised Lebanon’s decision to send former Ambassador Simon Karam to the talks, calling it a “free concession” to Israel.
Lebanese officials have expressed frustration over Israel’s near-daily attacks.
“It is one of the reasons why Lebanon agreed to sit down for face-to-face talks with the Israelis,” Khodr said, “engaging in diplomatic talks that are seen as very sensitive in Lebanon, in the hopes that it would avoid war.”
President Joseph Aoun said last week that Lebanon “has adopted the option of negotiations with Israel” aimed at stopping the continued attacks, while Prime Minister Nawaf Salam called for a more robust verification mechanism to monitor both Israeli violations and Lebanese army efforts to dismantle Hezbollah infrastructure.
“But the US ambassador to Lebanon, Michel Issa, made it clear a few days ago that even though Lebanon is sitting down in a room with a longtime enemy, it does not mean that the Israeli attacks will stop,” Khodr said.
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