China’s trust industry is facing a crisis, with the state-owned AVIC Trust Co. seeking assistance after delaying payments on its investment products. This follows similar struggles within the shadow banking sector witnessed in 2023 when Zhongrong International Trust Co., another major player, defaulted on billions of yuan worth of investments. Now, these delays are raising concerns about the broader health of China’s financial system. AVIC Trust, facing challenges in managing its outstanding claims and obligations, has turned to fellow trust firms CCB Trust Co. and SDIC Taikang Trust Co. for operational support. This marks a significant milestone as it’s the first time a state-owned trust firm faces such a situation since China’s Trust Law was enacted in 2001.