Trust funds favour real estate despite tightening

BEIJING: China's trust firms invested 207.8 billion yuan (RM95.5 billion) of funds in the real estate sector in the first half, with two-thirds of that in the second quarter, the official China Securities Journal reported on Tuesday, July 26.

That came despite repeated regulatory restrictions to channel funds into the red-hot sector amid Beijing's increasing efforts to cool rapid home price rises.

Citing a report issued by the official China Trust Association, the newspaper also said that trust firms cumulatively have invested 16.9% of their total assets of 3.74 trillion yuan in the property industry, second only to a 28.3% invested in the infrastructure sector.

Investments in stocks, mutual funds and bonds only account for 10%, it said. — Reuters