In an effort to control the risks posed by China's shadow banking system, the People's Bank of China (PBOC) announced it would incorporate all loans issued by trust firms in its database. In a statement on its website, the Chinese central bank noted the fast growth of trust loans in the past few years.

"While playing an active role in supporting the real economy and improving financial services, trust loans bear relatively high risks and some of the trading information is not transparent," the regulator said. The PBOC then asked all companies that are already part of its database to continue giving complete and timely information about loans they have issued. The central bank then demanded the remaining trust companies to submit their loan data at the earliest possible time.

PBOC data revealed new loans were issued in July by trust firms amounting to CNY 107.4 billion or USD 17.5 billion. The figure showed a decline in the CNY 205 billion average posted in the first half of this year.