Chinese Financial Firm's Default Sparks Investor Protests and Highlights Strains in $2.3 Trillion Trust Industry

• Sichuan Trust, a Chinese financial institution, is unable to repay investors 20 billion yuan, prompting protests from hundreds of angry investors demanding their money back

• Sichuan Trust's troubles highlight strains in China's $2.3 trillion trust industry amid an economic downturn and tighter regulations

• Trusts provide credit to areas like property and mining not easily financed by traditional banks; now vulnerable as real estate struggles

• Trust investors typically need 1 million yuan minimum to invest, drawn by high interest rates despite opaque practices and risks

• Defaults rising and government less willing to bail out firms, marking a shift away from saving struggling companies to boost growth