Imagine a Trust in China that has a liquidity problem. Notes are...

Imagine a Trust in China that has a liquidity problem. Notes are due now for payment and there is no money.

The PBOC says it will not help the Trust so it closes it's doors.

What would happen next?

Investors would bang on the Trusts door and front the banks where they bought the notes, demanding a full withdrawal. Immediately fear would drive millions of investors to front the banks that sold any Trust investments: all this in 24 hours.

Ultimately the government would be unjustly blamed but investors were never fully informed of the risks they were taking.

The army is brought in to keep order and things heat up. Some investors are killed and riots ensue.

etc.

So, what are the chances of the government allowing a Trust to go into liquidation?

Trust used to have another meaning many moons ago.