/biz/ - Business & Finance

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https://twitter.com/asia_markets/status/1690351996468166657
>Chinese trust companies on the brink: Looming bankruptcies “bigger than Evergrande”
China’s three trillion dollar trust industry could be on the brink of collapse, with sources telling Asia Markets a catastrophic wave of Chinese trust company bankruptcies is likely in the coming months.

It’s another major threat to the slowing China economy.

Chinese trust companies generally operate across multiple asset classes including stocks, bonds and private debt. The major problems within the sector are said to lie in their private debt operations.

The Asia Markets source says despite warnings from Chinese regulators in recent years, trust companies have continued to lend money to real estate developers, in order to generate higher yields on risker loans.
The problem is Trust executives were banking on a bounce-back in China’s property sector, which has not eventuated.

“The large trust companies invest on behalf of some of the wealthiest Chinese families and largest corporations and their staff, so what we’re about to see could be certainly bigger than Evergrande, in term of the ramifications within China,” the Hong Kong-based source said.