Jilin Trust default raises specter of more in coal industry

The fallout from the Jilin Trust default is spreading, and experts have warned of more default risks occurring in industries such as coal mining.

Songhuajianghao, a trust product designed by the northeast China-based Jilin Trust and backed by a coal company called Shanxi Liansheng Energy, failed to meet redemption on Wednesday, missed payments for the fifth time and pushed its default volume to 872.7 million yuan ($143.5 million).

The product was issued to clients of China Construction Bank, China's second-largest lender, and raised 972.7 million yuan in six issuances starting in 2011.