Trusts, Bonds Lead Surge in Credit 'Gambling'

(Beijing) – Default risks seem remote among local government financing platforms that have raised trillions of yuan since last year via trusts, bank-sponsored wealth management products, securities and bonds – and plan to borrow a lot more.

Most borrowers and lenders converging inside this unconventional credit circle, which has widened dramatically since 2011 in the face of bank loan limits imposed by the central government, are wearing a happy face.