What will happen to loan growth in China?

China Halts Loan Repackaging

Many trust companies received phone calls last Friday from the China Banking Regulatory Commission. The business of trust companies will be curtailed as the volume of wealth-management products account for two-thirds of their total business.

This is the practiced used by banks and finance companies in the U.S. to remove mortgages from their balance sheet, but the Chinese are nipping this practice in the bud.