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Are these "Chinese Trust Companies" like family offices in the US? The description in the article made me think so, just trying to understand what the equivalen
by hn_throwaway_99 3y ago
Are these "Chinese Trust Companies" like family offices in the US? The description in the article made me think so, just trying to understand what the equivalent is in Western markets.
- qzw 3y agoNo, it’s more like in the “Trust Buster” sense from US economic history. These are big conglomerates that control numerous subsidiary businesses across a number of industries. Japan, Korea, and numerous other countries have similar business entities.
- DrDroop 3y agoMy understanding is that is that in the Chinese system of commercial paper (corporate depth) not only is the company responsible for paying back the money but anyone who ever held and sold that piece of paper. These trusts are a type of (shadow) bank that manage this risk.
- thedudeabides5 3y agoYes, a trust is a non-bank financial institution that is responsible for packaging risk or directly extending credit to for example, local real estate / development projects.