Outstanding Total Assets in China’s Trust Industry Fell by 3.18% This Year

Forex News

Chinese authorities are in the third year of a campaign to reduce riskier financing practices and slow a rapid build-up in debt. Regulators in China are making further progress in reducing risks to the financial system. Today’s data showed a drop in assets in the trust industry, which is often linked with shadow banking. The banking and insurance regulator said, that outstanding total assets in China’s trust industry declined by 3.18% from the start of 2018.

The total number of loans to provincial government platforms and the financial industry fell 155.3 billion yuan from the beginning of the year. Trust loans dropped by 11.11 billion yuan since the beginning of the year to 8.39 trillion yuan at end-April.

While risky loans fell, the regulator said it had little impact on trust firms’ revenue which grew compared to the year before. Also last week, China’s securities association asked brokerages not to provide finance based on over-the-counter (OTC) stock pledges.