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.”
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AP Business Writer Elaine Kurtenbach contributed to this story.
World
Horvath to Heidenreich on 4th-and-goal leads No. 22 Navy to a 17-16 win over Army
BALTIMORE (AP) — Blake Horvath to Eli Heidenreich.
That’s the connection that led Navy to such a memorable season — and the two of them came through again on the biggest play of the biggest game.
Horvath threw an 8-yard touchdown pass to Heidenreich with 6:32 remaining — on fourth-and-goal — and No. 22 Navy rallied to beat Army 17-16 on Saturday. Heidenreich, the career and single-season leader in yards receiving for the Midshipmen, caught six of Horvath’s seven completions on the day.
“Who wouldn’t go to him?” Horvath said. “Talk about an all-time Navy legend. You’re going to be talking about Eli Heidenreich for years and years and years.”
Although it was clearly a passing situation, and Heidenreich was Navy’s top target, he was single covered over the middle.
“Tried to bring some pressure on them,” Army coach Jeff Monken said. “Good throw and good catch.”
With President Donald Trump in attendance, Navy (10-2) got its second straight victory over Army (6-6), and the Midshipmen won the Commander-In-Chief’s Trophy for a second straight season. The Black Knights have not beaten a Navy team that was ranked by the AP since 1955.
Horvath was fortunate to have the chance to throw that decisive touchdown pass. On second-and-goal from the 1, he lost the ball while attempting a tush push. Army linebacker Eric Ford had a chance to scoop it up, but Navy running back Alex Tecza lunged over to prevent that, and Heidenreich eventually fell on the ball back at the 8.
“That’s probably the last thing you want to see on the 1-yard line is you turn around and the ball is just bouncing behind you,” Heidenreich said. “I was blocking down. I thought he had pushed in, and kind of out of my peripheral I saw it going behind me.”
On the next play, Horvath was nearly sacked, but he was able to throw the ball toward Tecza as he went down. The ball fell incomplete instead of being caught around the 15, which was just as well for Navy because it made going for it on fourth down a more viable option.
“I kind of felt like we had to,” Navy coach Brian Newberry said. “The nature of what they do offensively, despite how well we played in the second half, you may not get the ball back.”
Even after Heidenreich’s touchdown and an Army punt, Navy still had to escape one more near-turnover. On third-and-3 from the Army 43, the ball popped loose on a run by Horvath, but he was able to catch it out of the air. It came loose again and the Black Knights recovered, but after a review, Horvath was ruled down before the second fumble — a yard short of the line to gain.
Tecza then ran for the first down that enabled Navy to kneel out the clock, and Horvath appeared to wave goodbye at the Army sideline. There was a bit of a ruckus near midfield after the final kneel-down before things eventually calmed down for the traditional singing of the alma maters.
“They want to talk all their crap during the game and act like they’re so tough,” Horvath said. “The excuse last year was that they played a conference championship game before us. This year, we’ll see what it is.”
The Black Knights were trying to turn the tables on Navy after a ranked Army team — which had just won the American Conference title — lost to the Midshipmen last year.
The teams traded touchdown drives to start the game, each lasting 13 plays, 75 yards and over seven minutes. Horvath had a 5-yard scoring run, and Army quarterback Cale Hellums answered with a 2-yarder. Army’s first drive didn’t end until 5 seconds into the second quarter.
Then it was a while before anyone reached the end zone again. With Army up 10-7 late in the second quarter, the ball slipped out of Horvath’s hand while he was looking to pass. Army recovered the fumble at its own 45 with 20 seconds to play and moved into range for a 45-yard field goal by Dawson Jones.
Navy’s defense stiffened in the second half, but the Midshipmen still flirted with disaster. Horvath threw an interception in the third quarter that was initially returned to the end zone — before a replay showed Army’s Justin Weaver had a knee down when he picked off the pass at the Navy 32. The Black Knights had to settle for three — Dawson connected on a career-long 48-yard kick.
Navy’s Wing-T offense has been explosive this season. The Midshipmen entered the day with an FBS-high 10 plays of at least 60 yards. Army mostly kept them contained, but Horvath slipped free for a 37-yard run that set up a third-quarter field goal that made it 16-10.
After Hellums’ underthrown pass was intercepted by Phillip Hamilton, giving Navy the ball at the 50 with 11:19 to play, Tecza’s 24-yard run made it first-and-goal from the 5.
Trump tossed the coin before the game at midfield, then returned at halftime to walk from the Navy sideline to the Army one.
One that got away
Army defensive lineman Jack Bousum, who is from Annapolis, had a big game against his hometown team. He finished with 1 1/2 sacks and a fumble recovery.
The takeaway
Army: The Black Knights were the better team in the first half Saturday but didn’t do much offensively after that.
“They beat blocks,” Monken said. “We didn’t sustain the blocks we needed to.”
Navy: Horvath made some big plays and some bad ones, and the Navy defense was stout in the second half. The Midshipmen finished tied for first in the AAC this year but missed out on the league title game because of tiebreakers. This victory matters more to them anyway.
Up next
Army: Faces UConn in the Fenway Bowl on Dec. 27.
Navy: Faces Cincinnati in the Liberty Bowl on Jan. 2.
___
This story has been corrected to show Army took over at the Navy 32 after Horvath’s interception.
___
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World
2 US Army soldiers, interpreter killed in Syria ambush attack, Trump warns of ‘very serious retaliation’
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President Donald Trump warned Saturday that there will be “very serious retaliation” after a lone Islamic State gunman in Syria killed two U.S. Army soldiers and a U.S. interpreter in an ambush attack.
Chief Pentagon spokesperson Sean Parnell announced earlier that the soldiers and interpreter were targeted in the central Syrian town of Palmyra in an attack that left three others wounded. U.S. Central Command said the deaths and injuries were a “result of an ambush by a lone ISIS gunman in Syria.”
“We mourn the loss of three Great American Patriots in Syria, two soldiers, and one Civilian Interpreter. Likewise, we pray for the three injured soldiers who, it has just been confirmed, are doing well. This was an ISIS attack against the U.S., and Syria, in a very dangerous part of Syria, that is not fully controlled by them,” Trump wrote on Truth Social.
“The President of Syria, Ahmed al-Sharaa, is extremely angry and disturbed by this attack. There will be very serious retaliation,” he added.
SYRIANS MARK FIRST YEAR SINCE ASSAD’S FALL AS US SIGNALS NEW ERA IN RELATIONS
U.S. forces patrol in Syria’s northeastern city of Qamishli in the Hasakeh province, on Jan. 9, 2025. (Delil Souleiman/AFP via Getty Images)
In comments to reporters outside of the White House on Saturday, Trump also said, “This was an ISIS attack on us and Syria. And again, we mourn the loss and we pray for them and their parents and their loved ones.”
Parnell wrote on X that the attack happened as the soldiers “were conducting a key leader engagement.”
“Their mission was in support of ongoing counter-ISIS/counter-terrorism operations in the region,” he added, noting that “The soldiers’ names, as well as identifying information about their units, are being withheld until 24 hours after the next of kin notification. “
Secretary of War Pete Hegseth said that, “The savage who perpetrated this attack was killed by partner forces.”
“Let it be known, if you target Americans — anywhere in the world — you will spend the rest of your brief, anxious life knowing the United States will hunt you, find you, and ruthlessly kill you,” Hegseth also said in a post on X.
Parnell said the attack is currently under investigation. A Pentagon official told Fox News Digital that the attack unfolded in a place where the Syrian President Ahmed al-Sharaa does not have control.
President Donald Trump meets with Syrian President Ahmed al-Sharaa at the White House on Nov. 10, 2025. A Pentagon official told Fox News Digital that the attack on the soldiers on Saturday, Dec. 13, 2025, unfolded in a place where the Syrian President Ahmed al-Sharaa does not have control. (Syrian Presidency/Anadolu via Getty Images)
“I’m praying for the brave U.S. soldiers and civilian who lost their lives, those who were injured in this attack, and the families who bear this profound loss,” Army Secretary Daniel Driscoll wrote on X. “The men and women who serve our country represent the very best of our nation. We mourn the passing of these heroes and honor their service and sacrifice.”
A senior U.S. official earlier confirmed to Fox News there were multiple injuries after American service members were ambushed in Syria.
“The United States, CIA and military forces are reportedly deeply involved in securing and stabilizing the situation in Syria,” Dan Diker, president of the Jerusalem Center for Security and Foreign Affairs, recently told Fox News Digital.
The injured in Saturday’s attack were taken by helicopters to the al-Tanf garrison, which is near the border with Iraq and Jordan, The Associated Press reported, citing Syrian state media.
ISRAELI OFFICIAL ISSUES STARK WARNING AFTER CHILLING SYRIAN MILITARY CHANTS RESURFACE
U.S. Army soldiers prepare to go out on patrol from a remote combat outpost on May 25, 2021, in northeastern Syria. (John Moore/Getty Images)
There are currently around 900 U.S. troops in Syria.
The U.S. had eight bases in Syria to keep an eye on ISIS since the U.S. military went in to prevent the terrorist group from setting up a caliphate in 2014, although three of those bases have since been closed down or turned over to the Syrian Democratic Forces.
On Monday, tens of thousands of Syrians flooded the streets of Damascus to mark the first anniversary of the Assad regime’s collapse.
U.S. Army soldiers stand near an armored military vehicle on the outskirts of Rumaylan in Syria’s northeastern Hasakeh province, bordering Turkey, on March 27, 2023. (Delil Souleiman/AFP via Getty Images)
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Those celebrations came a year after former Syrian dictator Bashar al-Assad fled the capital as rebel forces swept through the country in a lightning offensive that ended five decades of Assad family rule and opened a new chapter in Syrian history.
Fox News’ Lucas Tomlinson, Ashley Oliver, Jennifer Griffin, Benjamin Weinthal and Ashley Carnahan contributed to this report.
World
EU dismisses Russia’s lawsuit against Euroclear as ‘speculative’
Published on
The European Commission has dismissed as “speculative” and groundless a lawsuit launched by the Russian Central Bank against Euroclear, the Brussels-based central securities depository that holds €185 billion in immobilised assets.
In a short statement published on Friday morning, the Russian Central Bank announced the start of legal proceedings for the “recovery of damages” and blamed Euroclear for preventing the release of the assets, which are subject to EU law.
The lawsuit was submitted to the Arbitration Court in Moscow.
The development comes with the EU still hammering out a plan to channel Russia’s sovereign assets into a zero-interest reparations loan to Ukraine, a process with Euroclear at its centre. EU leaders are meant to make a final decision when they meet on 18 December.
“Our proposal is legally robust and fully in line with EU and international law. The assets are not seized, and the principle of sovereign immunity is respected,” Valdis Dombrovskis, the European Commissioner for the Economy, said on Friday afternoon.
“We kind of expect that Russia will continue to launch speculative legal proceedings to prevent the EU from upholding international law and to pursue the legal obligation for Russia to compensate Ukraine for the damages it has caused.”
According to Dombrovskis, all European institutions that have Russian assets, from Euroclear to private banks, will be “fully protected” against Moscow’s retaliation. The EU has controlled €210 billion in assets of the Russian Central Bank since February 2022.
The sanctions regime already allows Euroclear to “offset” any potential loss, he added.
For example, if a Russian court orders the seizure of the €17 billion that Euroclear has on Russian soil, Euroclear will be allowed offset the loss by tapping into the €30 billion that its Russian counterpart, the National Settlement Depository, has stored within the EU.
Additionally, the reparations loan, if approved, will introduce a new mechanism to deal with state-to-state disputes. If Russia seizes the sovereign assets of Belgium in retaliation, Belgium will be allowed to “offset” the lossagainst the €210 billion, while Russia will not recover the amount it has seized when the assets are freed.
The Belgian factor
The legal safeguards are meant to allay the concerns of Belgium, which remains the chief opponent of the reparations loan. Belgian Prime Minister Bart De Wever has repeatedly warned of the risk a successful legal challenge could pose.
“We put forward a proposal. We are confident in its legality and its court-proof character,” a Commission spokesperson said.
Euroclear, which declined to comment, has previously criticised the reparations loan as “very fragile”, legally risky and overtly experimental.
The lawsuit comes a day after EU countries agreed to trigger an emergency clause to immobilise the Russian Central Bank assets for the foreseeable future.
Under the new law, the €210 billion will be released only when Russia’s actions “have objectively ceased to pose substantial risks” for the European economy and Moscow has paid reparations to Kyiv “without economic and financial consequences” for the bloc – a high bar that is unlikely to be cleared any time soon, if ever.
The indefinite immobilisation is meant to further placate Belgium and Euroclear in order to facilitate the approval of the reparations loan next week.
In a separate statement, the Russian Central Bank said it “reserves the right, without further notice, to apply all available remedies and protections if the proposed initiatives of the European Union are upheld or implemented”.
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