Significant slowdown in growth in the second quarter, the Chinese trust industry, the country's so-called shadow banking system, the largest component of the high-risk loans, the government banned.
China's top leaders have expressed concern about the runaway credit growth and the debt crisis led to local governments and enterprises borrowing from high interest rates, the risk of non-bank lending institutions, especially the trust company.
In June, the central bank warned banks and trusts to reduce high-risk lending practices designed a short-term cash crunch.
Late Monday by the China Trust Industry Association released data show that China's 67 trust assets under management totaled a record 9.45 trillion yuan (1.54 trillion U.S. dollars) by the end of the second quarter.
Although this is the end of the first quarter, an increase of 8.3%, growth slowed sharply in the first quarter saw an increase of 16.9%. In 2012, total assets managed explosive growth of 55.3%.
Control shadow banking heavily dependent on debt-driven investment growth model shift away from state-led campaign is a key factor.
China Banking Regulatory Commission and other regulatory agencies have promulgated a series of new rules to curb bank risk business.
Together with other non-bank financial institutions such as brokerage firms, trust companies, has become an important source of credit, allowing banks to arrange off balance sheet refinancing maturing loans risk borrowers, such as the local government financing vehicles (local government finance platform) can not repay their internal cash flow.
Trust assets to the end of June, the total assets of the banking sector compared to more than 100 trillion yuan is still dwarfed.
Without trust in the case, the banking system NPLs (NPL) ratio may be much higher, although accurate estimate is impossible.
Trust selling wealth management products (WMP) to raise funds to enable them to purchase loans, banks want their books. Higher-yielding alternative to traditional bank deposits, financial products, and then through bank outlets.
China's banking regulator said recently that by the end of June, the outstanding financial products issued by banks totaled 9.08 trillion yuan. Trust assets, including the emergence of new data, about 70% of the total number, bank financial products usually involve cooperation with the Trust.
The association's data also includes funds to improve trust wealth management products sold directly to investors, not with banks.
The latest data are consistent with data released last month, the central bank said the new trust loans fell sharply in June, the rapid growth in January-May.
Rare window
Although the WMP product often includes only the uneven disclosure of the underlying asset, Trusts Association data provided WMP liquidity view.
26.8% of the outstanding WMP funds to invest in infrastructure, in the end of June, from 25.8 per cent at end-March. Real estate accounted for 9.1%, down to 9.4% by the end of March.
Industrial enterprises investment grew 29.4 percent, an increase of 27.8% over the previous year. Invest in stocks and bonds, the ratio decreased from 11.1% to 10.5%.
Banking regulators said that in the first half ended, the entire system is performing loan ratio was 0.96%, an increase of only 0.01 percentage points from the end of last year. Traders say, however, this figure only includes off-balance sheet loans, leaving a huge unsupervised.
 



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