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. Last Updated: 07/27/2016

China Snubs Trust

BEIJING -- China said Thursday that it will not bail out a troubled investment company and that the decision shows the government's determination to reform the shaky financial sector.

Foreign Ministry spokesman Sun Yuxi distanced the government from the troubles at Dalian city's investment arm. He said the Dalian International Trust and Investment Co. was legally established as an independent financial institution.

"It should shoulder all the responsibility for its current payment problem," Sun told reporters.

The company has failed to make payments on millions of dollars in loans and has up to $140 million in foreign debt, The Asian Wall Street Journal reported this week, citing international bankers.