China’s shadow banking system under spotlight as Sichuan Trust misses payments amid economic slowdown

Cracks are appearing in China’s 21.3 trillion yuan (US$31 trillion) trust industry, a key component of the country’s shadow banking system, as fresh trouble at Sichuan Trust highlights growing risks in alternative funding for companies unable to access regular bank loans.The cash-strapped trust company backed by the Sichuan provincial government last week apologised to investors for missing payments on its financial products, saying it was exploring new ways to generate cash.“Affected by the…

from South China Morning Post https://www.scmp.com/economy/article/3091933/chinas-shadow-banking-system-under-spotlight-sichuan-trust-misses-payments