China’s trust firms see shortage of borrowers as more cheaper funding becomes available amid monetary easing

>>REAL-TIME UPDATES IN THE WIRE. CLICK HERE<<<

Chinese trust companies are having difficulties finding new projects to invest in as monetary easing and looser liquidity in the wake of the coronavirus outbreak has made it much easier to get funding through other cheaper channels.

China’s trillion-dollar trust industry has for years served as a major funding source for companies that have difficulty getting financing from conventional sources such as bank loans.

The coronavirus outbreak has prompted Chinese authority to loosen monetary policy to offset the economic damage of the outbreak, leaving trust firms with a lot more competition.