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
Video: A Small Election Could Change British Politics
new video loaded: A Small Election Could Change British Politics
transcript
transcript
A Small Election Could Change British Politics
Voters in the northern English district of Makerfield cast ballots on Thursday to choose their representative in Parliament, the outcome of which could lead to Prime Minister Keir Starmer’s ouster.
-
Well, I don’t think there should be a leadership election. I think that the last government proved that parties that spend their whole time in leadership elections don’t go on to win the next general election.
By Alisa Shodiyev Kaff
June 18, 2026
World
From bear hugs to handshakes: How India lost its edge with Trump while Pakistan quietly gained ground
NEWYou can now listen to Fox News articles!
This week, President Donald Trump and Indian Prime Minister Narendra Modi came face-to-face at the G7 summit in France, their first such encounter since February 2025. Rather than his trademark bear hug, Modi greeted Trump with a smile and handshake.
Then on Wednesday, the two held a bilateral meeting. It was a friendly chat, but one that came against a backdrop of compounding tensions.
As India works at restoring its relationship with Washington, its arch-foe Pakistan has expanded its own diplomatic profile, complicating India’s campaign against its nuclear-armed rival.
COMMERCE SECRETARY HOWARD LUTNICK MAKES QUIET TRIP TO INDIA DAYS AFTER TARIFF SETBACK
President Donald Trump looks at Pakistan’s Prime Minister Shehbaz Sharif speaking following the official signing of the first phase of the Gaza ceasefire agreement between Israel and Hamas. Shariff announced his intention to nominate Trump for the Noble Peace Prize for a second time. (Evelyn Hockstein / Reuters)
For years, India built an international case against Pakistan, projecting it as an isolated or destabilizing state. This hardline stance appeared to be working, with Modi declaring to Pakistan, “India has been successful in isolating you, and we will intensify those efforts.”
But a decade later, Pakistan is rapidly emerging as a key global player in the region and beyond.
While Modi initially tried to engage Pakistan, his government’s approach eventually hardened around the mantra that “terror and talks cannot coexist.”
In Washington, India has typically been favored, with Presidents Trump, Biden, Obama and George W. Bush all making visits during their time in office.
President Donald Trump (R) shakes hands with Indian Prime Minister Narendra Modi during a bilateral meeting at the G7 Summit on June 17, 2026 in Evian-les-Bains, France. (Anna Moneymaker/Getty Images)
Modi built a rapport with Trump during his first term in office and was one of the first world leaders invited to the White House after Trump’s inauguration. But over the past year, that relationship has come under strain as Islamabad quietly clawed its way back to credibility.
“India misjudged Trump in term two, banking on once friendly relations,” Sid Dubey, a visiting professor at Bennett University in India, told Fox News Digital. “They have yet to start recovering from that.”
PRESIDENT TRUMP, INDIA’S MODI TO TACKLE TRADE, TARIFF TENSIONS AT HIGH-STAKES MEETING
U.S. President Donald Trump and Indian Prime Minister Narendra Modi wave to the crowd at Sardar Patel Stadium in Ahmedabad, India, Monday, Feb. 24, 2020. India poured on the pageantry with a joyful, colorful welcome for President Donald Trump on Monday that kicked off a whirlwind 36-hour visit meant to reaffirm U.S.-India ties while providing enviable overseas imagery for a president in a re-election year. (AP Photo/Aijaz Rahi)
The shift first became apparent in May 2025, when President Trump announced he had secured a ceasefire between nuclear-armed India and Pakistan. The fighting had come over India-administered Kashmir and was the worst in decades.
Islamabad promptly praised Trump for ending the deadly dispute and even nominated him for a Nobel Peace Prize. New Delhi, however, rejected the claim, insisting the ceasefire was the result of direct bilateral talks with Pakistan.
The response reflected India’s long-standing sensitivity to third-party involvement in what it fiercely maintains is a bilateral dispute.
In the months that followed, frictions only deepened.
FILE — In this Jan. 11, 2013 file photo, a Pakistani Ranger in black uniform and his Indian counterpart march during a flag-off ceremony, at the joint Pakistan-India border check post of Wagah near Lahore, Pakistan. (AP Photo/K.M. Chaudary, File)
President Trump hit India with some of the steepest tariffs imposed on any major economy. Meanwhile, U.S. sanctions pressure on Russian oil rattled energy import-dependent India, while disputes over H-1B visas added further strain. Analysts say Trump’s America First agenda increasingly overshadowed the friendship Modi had cultivated during Trump’s first term.
“When Trump unfortunately said the May 2025 clash ended because of him personally, that upset India a lot, and they made that known,” Dubey said. “Then the tariffs were another slap in India’s face. Meanwhile, Pakistan took advantage, leaving India at a bit of a loss. From there, relations fell further with the Iran conflict.”
India is among the countries most indirectly affected by the strategic fallout from the Iran war, facing economic pressure and mounting energy concerns.
IRAN WAR FUELS ASIA ENERGY CRUNCH AS INDIA, JAPAN, OTHERS FEEL STRAIN
Iranian Parliament Speaker Mohammad Bagher Ghalibaf meets with chief of Defence Forces of Pakistan, Field Marshal Asim Munir, in Tehran, Iran, May 23, 2026. (Iranian Parliament Speaker Office/WANA (West Asia News Agency)/Handout via Reuters)
Last week, a U.S. strike further exacerbated tensions after three Indian seafarers became collateral damage in the conflict. They were the first and only seafarers confirmed killed as part of the U.S. blockade, sparking outrage across India.
New Delhi instantly summoned Washington’s Chargé d’Affaires Jason Meeks, expressing deep concern over the renewed attacks and arguing that its nationals were becoming casualties in a war not their own.
India also warned of the broader humanitarian, economic, and energy consequences of the conflict, which are expected to linger even as an agreement has now been reached.
U.S. Vice President JD Vance, center, walks with Pakistan’s Chief of Defence Forces and Chief of Army Staff Field Marshall Asim Munir, left, and Pakistani Deputy Prime Minister and Foreign Minister Mohammad Ishaq Dar after arriving for talks with Iranian officials in Islamabad, Pakistan, Saturday, April 11, 2026. (Jacquelyn Martin/Pool via AP Photo)
All the while, Pakistan was gaining diplomatic visibility, finding itself in the unusual position of currying favor in Washington while maintaining deep ties with China, Iran and the Gulf states.
Pakistan’s prominent role in recent months highlighted how Islamabad has been more nimble in its diplomacy than India,” Council on Foreign Relations Senior Fellow Sadanand Dhume told Fox News Digital. “Additionally, Pakistan decisively outmaneuvered India’s quixotic bid to isolate Pakistan on the world stage.”
Regional dynamics have also been reshaped by the two rivals’ competing strategies. India has deepened its strategic partnership with the U.S. through alliances such as the Quad partnership with the U.S., Australia, and Japan and has expanded cooperation across South Asian states, including a burgeoning relationship with Afghanistan. Meanwhile, Pakistan’s growing regional relevance has been reflected in its strengthened ties with China, improved relations with regional partners like Bangladesh and expanded security cooperation with Gulf states.
RUBIO VISIT TO INDIA PUSHES DEEPER ENERGY TIES AS IRAN CONFLICT RATTLES GLOBAL OIL MARKETS
Additionally, Trump, who accused Pakistan of “deceit and lies” during his first term, has since repeatedly praised its leadership. In June 2025, the president invited Pakistan’s army chief Asim Munir to the White House for a high-profile lunch meeting.
Munir was the first Pakistani military chief who was not also president to be hosted by a U.S. president. He also led the war effort against India earlier that year.
In this photo released by the Inter Services Public Relations, Pakistan’s Chief of Defense Forces and Army Chief Gen. Asim Munir, center, Pakistan Naval Chief Admiral Naveed Ashraf, left, and Pakistan Air Force Chief Air Chief Marshal Zaheer Ahmed Babar attend a guard of honor ceremony at the joint military command headquarters in Rawalpindi, Pakistan, Monday, Dec. 8, 2025. (Inter Services Public Relations via AP)
Trump described Munir as his “favorite Field Marshal” and an “exceptional human being.”
Their relationship has been further reflected in trade deals and, most recently, Pakistan’s role as a principal mediator in restoring diplomacy between the U.S. and Iran.
“India tried to make Pakistan an international pariah. Instead, Pakistan has wormed its way into Trump’s good books through a combination of concrete co-operation with the U.S. and outrageous flattery of the president, leading to Trump elevating Field Marshal Asim Munir and Prime Minister Shehbaz Sharif as heroes,” Dhume said.
India, meanwhile, has maintained close ties with Israel while generally sticking to more measured messaging.
TRUMP’S FAVORITE FIELD MARSHAL: WHO IS PAKISTAN’S POWERFUL ARMY CHIEF ASIM MUNIR WITH DEEP INTEL TIES
On June 15, upon the agreement of a deal with Iran, Modi released a statement, saying, “India hopes that the implementation of this understanding will help restore peace and stability in the region and ensure the freedom of navigation and commerce.”
“Hats off to Pakistan. They worked really hard to bring this awfully disruptive war with Iran to an end,” Dubey told Fox. “India unfortunately lost out by not seeking to be a problem solver like Pakistan. It could have played its cards better as a peacemaker, given its traditionally strong relations with Tehran.”
Still, analysts caution these are rapidly evolving dynamics. There is no guarantee that Pakistan’s current moment will last, and the tide for India could still turn.
“Pakistan’s mediation role has allowed it to substantially reset its international image. It has positioned itself as a responsible international actor rather than a rogue state responsible for both nuclear proliferation and exporting Islamic terrorism. How long this lasts depends in large measure on two things: will Pakistan find a way to remain in Trump’s good books, and will it be able to change its behavior sufficiently to convince the world that it has indeed turned over a new leaf,” Dhume told Fox News Digital.
Meanwhile, India is working to regain its position and show the U.S. it is still a reliable partner.
Marco Rubio visited India last month, his first since becoming Trump’s top diplomat last year, which was widely seen as an attempt to reset ties.
Secretary of State Marco Rubio speaks as President Donald Trump looks on during a cabinet meeting in the Cabinet Room of the White House in Washington, DC, on April 30, 2025. (JIM WATSON/AFP via Getty Images)
Trump and Modi’s G7 meeting marked another significant step.
Trump praised Modi as “calm, cool and totally killer” and said he would be traveling to India “sometime in the future.” India has been pressing Trump for a visit, potentially as part of a broader meeting involving Japan and Australia.
Trump also said the United States would defend India.
CLICK HERE TO DOWNLOAD THE FOX NEWS APP
“If anybody attacks that man, we’re going to be there,” Trump said, referring to Modi. “Now, if there’s a new leader, I’m not sure about it.”
The Pakistani and Indian governments did not respond to Fox News Digital requests for comment.
World
EU of six, not 27, is needed to ‘stay relevant’ – Bruno Le Maire
Working with a coalition of six core European countries instead of 27 is the best way to reinforce Europe, former French Economy Minister Bruno Le Maire told Euronews on the sidelines of the G7 summit in Évian, France.
ADVERTISEMENT
ADVERTISEMENT
His comments come as the European Union looks for ways to streamline its decision-making process and become more agile on key issues from defence to foreign policy.
“The single lesson that all the European leaders must draw from the past months, and I would say from the last two years, is that if they want to be relevant and strong, they need to be united. And they don’t need to unite with 27 member states,” he said in a Euronews interview.
“They need to give a new impetus to the European construction by building a European [project] with six core countries,” Le Maire, who was the longest-serving economy and finance minister since World War II and the shortest-serving minister for armed forces, note
Le Maire listed France, Germany, Italy, Spain, Poland, and the Netherlands — the EU’s six largest economies — as the states that should band together to discuss key issues facing the bloc, ranging from the Iran conflict and support for Ukraine to chip manufacturing on European soil and nuclear energy.
“Six countries instead of 27 countries is the best way of reinforcing Europe, of facing the threats posed by many empires around the world, and getting some concrete results,” he said.
Le Maire pointed to the pressure from the US administration against the EU, including tariffs and threats over regulatory standards, in response to Brussels’ antitrust fines and digital regulations targeting American tech giants like Google and Amazon.
“We can no longer accept being blackmailed […]. The way President Trump and the US administration are saying, ‘You should get rid of the taxation of Google, Amazon, Facebook, and Microsoft, otherwise, I will hit you with new tariffs,’ is 100% unacceptable among allies,” he said.
“If we want to resist that kind of threat, that kind of blackmail […] the six strongest European member states must stand united […]. If we are divided, you cannot resist that pressure,” he said.
“If you stand united, explaining that it will be difficult for the US to gain access to the European market if they do not respect Europe as a partner, that is the best way of getting some concrete results.”
Too much talk, too few decisions
Often held up by a principle of unanimity, Le Maire told Euronews that involving 27 countries to form a consensus on EU decision-making means “long talks and very few decisions”, while what is needed now is “strong decisions and fewer talks.”
He envisioned a structure in which the six core countries move forward on matters, and “then the 21 other member states, if they want to join, they will join,” adding, “first of all, let’s move on.”
The idea of this coalition is not new. In fact, it already exists in some shape or form.
Earlier this year, the finance ministers of Germany, France, Italy, the Netherlands, Poland and Spain launched a new coalition, dubbed the “E6”, to push for “decisive action and swift progress” in four strategic areas: defence, supply chains, the Savings and Investments Union, and strengthening the euro internationally.
“We are providing the impetus, and other countries are welcome to join us,” German Finance Minister Lars Klingbeil said at the time. The President of the European Commission, Ursula von der Leyen, endorsed this two-speed Europe concept as a way of bolstering the European economy.
In May, the E6 signed a joint letter calling for an acceleration of the Capital Markets Union (CMU) in an attempt to get a deal through a politically stagnant Brussels.
The CMU aims at creating a single, integrated market for capital across all 27 member states to service companies, investors and consumers.
-
News9 minutes agoLuigi Mangione’s lawyers withdraw plans for psychiatric defense
-
New York1 hour agoVideo: Knicks Fans Celebrate With Ticker-Tape Parade
-
Los Angeles, Ca2 hours agoArmed, dangerous CHP pursuit suspect tied to double homicide in Pomona
-
Detroit, MI2 hours agoFirst responders honored after rescuing 12 people from capsized sailboats near Belle Isle
-
San Francisco, CA2 hours agoOakland man faces hate crime charges for Castro District attack
-
Dallas, TX2 hours agoAt least 4 injured after vehicle drives into Dallas crowd, driver arrested
-
Miami, FL2 hours agoMiami Central students prepare for life changing trip to Zimbabwe amid funding challenges
-
Boston, MA2 hours agoGiannis to Boston is a possibility. Should the Knicks be worried?