China's banking regulator confirmed today that it had ordered trust firms to examine the risks posed by their property-related loans. The notice aims to effectively implement property policies at the national level and improve the capacity of trust firms to prevent and control risks.
These firms have been an important channel for Chinese banks pumping credit into property projects since Beijing tightened controls on bank lending. Earlier this year, the CBRC ran stress tests on trust firms to see if they could withstand a downturn in the property sector.
These firms have been an important channel for Chinese banks pumping credit into property projects since Beijing tightened controls on bank lending. Earlier this year, the CBRC ran stress tests on trust firms to see if they could withstand a downturn in the property sector.
