Guangzhou Shipyard has joined the growing list of H-share companies which have encountered difficulties recouping deposits. The company said it had failed to collect 202.34 million yuan (about HK$188.27 million) in trust and designated deposits that were overdue for repayment. Guangzhou Shipyard had 571.4 million yuan - including 540.92 million yuan in principal and 30.48 million yuan in interest receivables - with five mainland non-bank financial institutions. The institutions were Guangzhou International Trust and Investment, Guangzhou Economic and Technology Development Zone, International Trust and Investment, Guangdong Overseas Chinese Trust and Investment, Guangzhou Foreign Economic and Trade International Trust and Investment. The company said it was taking 'every appropriate step' to ensure prompt repayment. It said the relevant authorities were concerned about the matter and it was confident the deposits would be recovered soon. Guangzhou Shipyard said under its deposit contracts, the financial institutions for the trust deposits and the borrowers for the designated deposits were responsible for repaying the money. Analysts said the incident highlighted the increasing risks inherent in the mainland's developing financial sector, especially of the free-wheeling trust and investment firms which were being cleaned up by Beijing. Zhenhai Refining and Chemical is taking legal action against China Orient Trust and Investment, solely owned by the Bank of China, after it was not permitted to withdraw US$20 million in fixed deposits. Luoyang Glass had 197.08 million yuan in fixed and designated deposits overdue for repayment. The money was saved with the parent's finance arm, Guangzhou International Trust and Investment, and two local branches of China Construction Bank. Public concern over the mainland's financial sector was aroused in April when Dongfang Electrical Machinery and Maanshan Iron and Steel said they could not withdraw their deposits with banks and non-bank financial institutions.