Citic Trust Co, a unit of China's biggest State-owned investment company, said a steel company didn't make loan payments that would have been used to pay investors in one of its trust products.
Yichang Three Gorges Quantong Coated and Galvanized Plate Co failed to pay 119 million yuan ($19.1 million) in principal and interest that were due Monday to a trust-product account, Citic Trust said in a statement.
The steel company last month made a 74.6 million yuan payment a day after the Dec 20 deadline. Yichang, which has suffered from declining steel prices, raised 1.33 billion yuan in January through a trust product sold by Citic Trust and used the money to buy raw materials.
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