2017-09-10 — reuters.com
As a flood of unregulated cash swirls through the Chinese economy, Beijing has been taking aim at the trust companies whose unrestrained lending practices are worrying regulators... but the fast-growing 20 trillion yuan ($3 trillion) industry, whose lending operations are cloaked behind opaque structures, will be tough to rein in, according to employees at some trusts.
The practices of the trusts, and the speed at which the industry is growing, have made them a target for Beijing as it tries to keep a lid on risky lending, cool overheated markets and control corporate debt.
In April, Deng Zhiyi, head of the CBRC's trust department, warned of "severe risks" from funds flowing into the real estate, coal and steel sectors through trusts.
The industry is now roughly a tenth the size of China's commercial banking sector.
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