Chinese Insurer Warns Of "Mass Defaults, Social Unrest" Due To "Mass Redemption" Run

Amazing article currently on ZeroHedge.

There is an ongoing theme of underlying issues in the Chinese Shadow banking system, particularly the nature of the recent boom in Wealth Management Products (WMPs) and the companies selling them. Very interesting developments:

'In a stunning announcement made by one of China’s largest insurers, Foresea Life has warned of "mass defaults and social unrest" unless China's regulator lifts a recent ban on its issuance of new products. In a letter to China’s insurance regulator, first reported by the Financial Times, Foresea Life Insurance which is a heavy investor in WMPs, has warned  that the company expects "redemptions" of 60 billion yuan, or $8.7 billion, this year and might be unable to meet payouts unless it is able to sell new products.'

Find the whole story here: http://www.zerohedge.com/news/2017-05-18/chinese-insurer-warns-mass-defaults-social-unrest-due-mass-redemptions-run