Commenting on the collapse of AVIC Trust, SMU Associate Professor of Finance Fu Fangjian said that the trusteeship of AVIC Trust was equivalent to finding two helpers; however, the helpers' role was not to provide a safety net, but to assist in recovering relevant project assets. He added that as for how much can be recovered, it is probably not optimistic. Assoc Prof Fu believes that China’s central government has not yet intervened, perhaps because AVIC Trust's default has not yet constituted any systemic risk. He mentioned that the risk is controllable, and the central government will still spend money wisely.
