By Li Jinnan, Partner, King & Wood’s Banking Group
The expansion of bank-trust cooperation and the practice of repackaging off-the-book bank loans into trust products for sale to consumers came under unprecedented scrutiny this July as the China Banking Regulatory Commission ordered trust companies to cease all cooperative work with banking organizations.
Recent reports reveal that the complete shutdown of bank-trust cooperation has now been repealed, but the CBRC’s new circular allowing banks to resume cooperation with trust companies has place a number of new conditions on the once burgeoning industry.Continue Reading Trust Products Back on the Market