Citic Trust, a unit of conglomerate Citic Group, and CCB Trust will lead the effort to stabilize operations at Zhongrong. The plan underscores growing concern among policymakers about the $2.9 trillion trust sector s impact on financial stability amid disappointing economic growth and a worsening property slump.
(Bloomberg) China has asked two of the nation’s biggest financial firms to examine the books of Zhongrong International Trust Co., potentially paving the way for a state-led rescue of the troubled shadow lender, according to people familiar with the matter.Most Read from BloombergCitadel Vets 69,000 Intern Applicants to Find Next Math GeniusesPutin Agrees to Visit China in First Trip Since Arrest WarrantWhat to Do With a 45-Story Skyscraper and No TenantsSingapore Money Laundering Case Embroi
Regulatory Reform Forces China’s Trust Firms to Cut Back on Risky Lending - Over the past two years, many companies have been shrinking their financing business and expanding investment trust activities
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Regulator Warns China’s Trust Firms That Crackdown Isn’t Over
The CBIRC on Sunday outlined a target of cutting the total outstanding value of trust-financing products by another 1 trillion yuan this year. Photo: IC Photo
China’s banking and insurance regulator has pledged to continue its crackdown on the trust industry this year, with a particular focus on curbing trust financing and channel lending, amid concerns about mounting risks in the sector.
At a meeting on Sunday, the China Banking and Insurance Regulatory Commission (CBIRC) outlined a target of cutting the total outstanding value of trust-financing products by another 1 trillion yuan ($155 billion) this year and effectively shutting the business down completely over the next five years, several trust firm executives who attended the annual regulatory work conference told Caixin.