CBIRC issues updated draft measures on classification of trust companies’ trust business

These proposed regulations are part of the government’s long-running efforts to clean up the once free-wheeling trust sector following a series of high-profile scandals involving trust companies carrying out illicit activities. Trust companies used to be at the center of China’s shadow banking system, helping high-risk businesses unable to get financing elsewhere to raise funds, albeit at a high cost, while evading relevant requirements on risk control…