China's trust insurance fund to start with 40b yuan

Shanghai

A PLANNED insurance fund for China's trust industry will have an initial size of around 40 billion yuan (S$8.5 billion), the state-owned China Securities Journal reported, citing unidentified officials from the banking regulator.

The fund, the first of its kind, will mark the capstone of Beijing's long campaign to insure all of China's financial industries, reducing risk in the country's shadow banking sector while preparing the way to allow more defaults and bankruptcies.

The China Banking and Regulatory Commission (CBRC) on Friday published rules governing the management of the planned insurance fund, but did not say when the fund …