New dangers lurk in trust firms' rush to finance

A new financial danger is emerging on the mainland, with dozens of under-regulated trust companies channelling funds from clients and bank wealth management products into a range of capital-hungry companies and overexposed local government financing vehicles.

Problematic borrowers began turning to the trust firms last year when banks and bond markets tightened scrutiny over such loans.

via Business feed http://www.scmp.com/business/china-business/article/1152695/new-dangers-lurk-trust-firms-rush-finance