Chinese authorities have asked Citic, CCB to help stabilize struggling shadow bank

<p>A unit of Citic Group and CCB Trust, which is backed by China Construction Bank have been asked to examine the books of Zhongrong International Trust Co.</p><p>This could be the precursor to a state-led rescue of the shadow lender.</p><p>The background to this is the woes at Zhongrong:</p><ul><li><a href="https://www.forexlive.com/news/chinas-zhongrong-misses-dozens-of-payments-as-fallout-spreads-20230816/" target="_blank" rel="follow" data-article-link="true">China's Zhongrong misses dozens of payments as fallout spreads</a></li><li><a href="https://www.forexlive.com/news/china-concerns-continue-to-linger-in-the-market-20230816/" target="_blank" rel="follow">China concerns continue to linger in the market</a></li></ul><p>Chinese policymakers are becoming increasingly concerned about the $2.9tln trust sector's influence on financial stability. Zhongrong and its affiliated Zhongzhi Enterprise Group halted payments on numerous investment products to wealthy individuals and companies earlier this month.</p><ul><li><a href="https://www.forexlive.com/news/china-trust-company-zhongzhi-is-planning-a-debt-restructuring-20230817/" target="_blank" rel="follow" data-article-link="true">China trust company Zhongzhi is planning a debt restructuring</a></li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.