China’s trust sector returned to profit growth in the first half of this year, following a regulatory overhaul aimed at curbingshadow banking risks, reports Caixin.
Total profit at China’s trust companies edged up 0.45% year-on-year to RMB 19.7 billion ($2.8 billion) in the period, supported by rising revenue, data from the China Trustee Association showed. Despite the rebound, profit levels remain well below historical highs, reflecting the sector’s ongoing transition.
The profit rebound follows regulatory changes rolled out in 2023 that pushed trust companies away from channel-style lending — particularly to property developers — and toward standardized asset management and service-oriented businesses.