A Chinese trust firm said on Monday it had reached an agreement to resolve a troubled high yield investment product, just days away from what could have been a precedent setting default in China's shadow banking system.
The 3 billion yuan (299.7 million pounds) product, based on a loan to a struggling unlisted coal company which has since collapsed, was due to mature on January 31.
(Read more: China's shadow banking woes are 'exaggerated')
The product was created by China Credit Trust and sold to wealthy investors through branches of Industrial and Commercial Bank of China, the world's largest bank by assets.
In a notification to investors, obtained by Reuters, the trust firm declared that an accord had been reached and advised investors to contact client managers, but the document, did not say how or when investors would be repaid.