By the end of the first quarter of 2018, #China’s #trust industry had 659 risk projects worthy of 149.132 billion yuan, and the risk rate of trust #assets was 0.58%.
1 year later, the number of risk projects in the industry increased to 1996, mounting to 283.059 billion yuan, and the risk rate of trust assets rose to 1.26%.
The rise of trust risks is mainly because, with #China’s deleveraging drive in 2018, many off-balance sheet funds of #banks were recorded back as #deposits, while the #debt of platforms is restricted, so the cash flows of #businesses are relatively tight.
A few trust companies are aggressive in their business expansion, which leads to a large decline in credit, resulting in an increase in overdue debt or even #defaults.
By the end of the first quarter of 2019, risk projects take up a higher proportion - 1.26% - in the entire trust industry. But the trust sector in China is still less risky than banks (the NPL ratio at the end of 2018 was 1.83%) , which are usually considered the most robust.
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