(Yicai Global) Dec. 29 -- The China Banking Regulatory Commission will prioritize rectifying the trust industry and put unprecedented pressure on it, Sina Finance quoted Deng Zhiyi, director of CBRC's trust department, as saying.

China's trust industry had CNY25 trillion (USD3.8 trillion) in assets under management at the end of last month with 12 companies under Beijing's jurisdiction managing over CNY6 trillion, Deng said at a forum in that city on Dec. 25.

The value of assets in the trust industry has shot up too quickly, rising more rapidly than that of those in the banking sector, Deng said.

The central government has criticized financial disorder, the industry and its supervision multiple times, said Deng. The trust industry must learn how to conform to the general trend and standardize business operations while deleveraging, Deng said.

Fiduciaries should understand that fundamental changes have taken place in the external environment, Deng said.

The CBRC will mete out the toughest punishments to fiduciaries who violate regulations, he said, adding that 18 companies have been disciplined this year, and that next year authorities will be stricter.