China continues shadow banking crackdown

Wednesday, 17 July 2019

Financial regulators have instructed 12 more trust companies to keep their investments in real estate in check and stop illegally funding developers, in an effort to stave off speculation in the rebounding property market.

The widening clampdown on trust financing of real estate projects is a sign of regulators’ unease that the rapid growth in a key source of early funding for the industry might be exacerbating risks in the market.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.