Pursuits
China Said to Crack Down on Property Financing Through Trusts
- Authorities are intensifying campaign to curb financial risks
- Shanghai property stocks fall as analyst sees negative impact
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China’s banking regulator has instructed trust companies to rein in funding to the nation’s booming real estate sector, intensifying a campaign to curb risks in both the property market and the shadow-finance industry.
The China Banking Regulatory Commission’s guidance covered real estate and other industries facing overcapacity, according to people familiar with the matter. The CBRC will take action against disguised property financing by the 20 trillion yuan ($2.9 trillion) trust industry, including lending through partnerships, asset management plans or related businesses such as suppliers, the people said.