Core Viewpoint - The trust industry in China is facing new regulatory scrutiny regarding property trusts backed by bank credit assets, with multiple trust companies receiving guidance to halt new business in this area and gradually reduce existing operations [1][2]. Group 1: Regulatory Changes - Several trust companies have received window guidance to stop new property trusts backed by bank credit assets, and existing businesses must be gradually reduced [1] - The regulatory move aims to address concerns over financial intermediation and the potential for regulatory arbitrage associated with credit asset trusts [2] Group 2: Industry Growth - According to the China Trust Industry Association, the scale of managed property trusts reached 5.54 trillion yuan by the end of 2021, an increase of 1.36 trillion yuan from the previous year, marking a growth rate of 32.53% [2] - The proportion of managed property trusts in the industry rose to 26.98%, up 6.56 percentage points from the previous year, indicating significant growth in both scale and market share [2] Group 3: Risk Factors - The credit asset trust business poses risks, including non-compliance with traditional credit asset transfer rules and a lack of constraints on risk retention and holder concentration in asset securitization [2] - The real estate sector remains a significant focus, with some trust companies reporting nearly 50% of their assets allocated to real estate, while most maintain a concentration below 30% [3]