(Reuters) – People who know about the matter told Bloomberg News on Tuesday that China’s top auditor is looking into the $3 trillion trust industry.
China’s trust industry has been an important part of the country’s shadow banking business, which helps move deposits into risky investments through products that are often made to avoid capital or investment regulations.
People who know about the situation told the report that China’s National Audit Office has been looking at the books of at least 20 trust firms for the past month to see how much risk they pose to financial stability.
The firms are being asked to report on their risky loans to developers and how they plan to get rid of them, the report said. (https://bloom.bg/3bN54GO)