Growth in trust assets slow in China

A government clamp down on risky lending slowed growth in China’s trust sector, the largest part of the country’s shadow banking system, Reuters reported. Data published by China Trustee Association on Monday showed total assets managed by China’s 67 trust firms reached a record-high of US$1.54 trillion by the end of the second quarter. But the 8.3% growth in the second quarter is far lower than the 16.9% growth shown in the first quarter. In 2012, total assets managed grew by an explosive 55.3%. Beijing’s policies have signaled concern over runaway credit growth due to borrowing at high rates, especially at trust companies.