(Yicai Global) June 20 -- Assets held by China’s trust companies fell in the first quarter for the first time in two years, with the slide expected to continue, as the sector spurns risk in line with government policy.
Total assets managed by 68 trust companies dipped 2.4 percent to CNY25.61 trillion (USD4 trillion) in the first three months, from the quarter before, data from China Trustee Association shows. Growth had already slowed in the last quarter of 2017 to 16.6 percent from almost 30 percent a year earlier.
Efforts to clamp down on market uncertainty and avert risks in the trust sector have started to pay off, with trust companies beginning to control the scale and growth of assets in response to government efforts to clamp down on “market chaos,” according to CTA Special Research Fellow Zhou Ping.
Total profit at trust services grew 8.4 percent annually to CNY16.8 billion in the first quarter, posting single-digit gains for four consecutive quarters. Services remain a major source of profit growth in the sector.
Editor: William Clegg