How did Chinese trusts come about

The Chinese trust sector dates to 1979 with the creation of China International Trust & Investment Co. (CITC).  Chinese trusts thrived, and played a large role in lending to construction subsidiaries, playing a dual role as both an overseas and domestic partner.  Though profitable during China’s booming housing market, the trusts did encounter problems in the late 1990’s when the housing market encountered setbacks.  Several notable trusts went bankrupt, defaulting on hundreds of millions of US dollars worth of loans, and prompting calls for reforms.

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