Via Reuters:
China’s banking regulator sees “severe risks” from funds flowing into the real estate, coal and steel industries through the trust industry, a major part of the shadow banking sector, two sources with knowledge of the matter said on Thursday.
Deng Zhiyi, head of the Trust Department at the China Banking Regulatory Commission (CBRC), recently told trust firms at this year’s work meeting that the risks may be higher than originally estimated, the sources told Reuters.
