BEIJING - Some of China's top trust companies have halted property-related lending and investment following a regulatory order, four sources told Reuters on Monday.
Seeing risks in rapid credit expansion to real estate projects, the China Banking Regulatory Commission last week instructed trust firms to assess the risks posed by their portfolios in a fresh move to rein in the red-hot property market.
Two sources close to Zhongrong International Trust cited a company document as saying that it had halted all new plans to invest in the property sector, except affordable housing -- a niche strongly supported by the government.
One of the sources added that China might order a complete halt to all property-related businesses by trust firms.
The CBRC in July ordered trust companies to halt the launch of wealth-management products via banks.