Minsheng Trust signals worsening distress
Annie Lin
Signs of liquidity stress are mounting…
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Trust
9 posts
Sichuan Trust investors finally compensated, as authorities push for bankruptcy reorganization
David Zhang
Nearly four years after a major default, Sichuan Trust is finally close to being restructured…
Major mutual funds cut management fees following CSRC guidance
Xiaorui Zhang
Large Chinese mutual funds have plenty of space to make these cuts. The reductions may hurt small operators, but it appears regulators have already figured that eventuality into the rollout…
CBIRC issues rules to tighten regulation of trust companies’ satellite branches
Alex Yang
This notice is part of a broader effort by the CBIRC to overhaul the trust industry, improve risk control and governance, and strengthen regulation after a series of scandals, defaults, and illegal activities that left investors nursing heavy losses. After years of deliberation, the commission in March released the final version of rules on the classification of trust companies’ trust businesses…
CBIRC issues final rules on classification of trust companies’ trust business
These regulations are part of the CBIRC’s multi-year efforts to clean up the trust sector, which used to be at the heart of China’s shadow banking system. Following the implementation of new asset management rules in 2018, trust companies’ shadow banking activities – such as capital pooling and illicit channeling – were put under stricter scrutiny and reduced significantly in size…
Two Sessions reports highlight need to control financial risk
Policymakers and regulators have done a bang-up job cleaning up a chaotic sector that was arguably once the most prominent risk to the economy. The objectives in the Two Sessions reports are largely aimed at tying up that campaign…
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…
CBIRC implements new business classification rules for trust companies
The updated trust business classification system is part of a broader government strategy to de-risk the financial sector. Since a wave of high-profile scandals involving…
New China Trust ok’d to enter bankruptcy proceedings
Xiao Jianhua was money man to some of China’s most elite families, so we may never know the true nature of his offense. What we really want to know is what Xiao told investigators, and whether he cut a deal for his cooperation