Chinese investors avoided a high-profile trust default on Monday, easing worries that the economy may be about to tip the first domino of shadow banking defaults. China Credit Trust reached a last-minute deal with investors to repay their investment in the three-billion-yuan (about 500 million U.S. dollars)product, deflating concerns that default would pound investor confidence in shadow banking and trigger credit crunches. “This offer comes as a compromise given rising concerns over a full default, but it is likely that investors have become more cautious on trust products in general,” said Zhang Zhiwei, chief China economist at Nomura. The trust product, launched in February 2011, attracted some 700 private bank clients of the Industrial and Commercial Bank of China to invest in a private coal miner in north China’s Shanxi Province. Shanxi Zhengfu Energy Group went bankrupt […]