China actions probe of $3trn trust industry - reports 

China is undertaking an audit probe of the $3trn trust industry, according to a report by Bloomberg News on 9 August.

Trust firms have this year defaulted on around $8.6bn of investment products linked to property developers, which were sold to wealthy Chinese, according to industry data tracker Use Trust.

For the past month, China's National Audit Office has been inspecting the books of at least 20 trust firms to gauge the risks they pose to financial stability, the report said, citing people familiar with the matter.

The firms are being asked to report on their risky loans to developers and any plans to dispose of them, the report said. 

The audit office is expected to submit its conclusions to policy makers in Beijing, who may decide on the future reforms of the sector, the people further said.