China released guidelines to enhance supervision of trust companies, aiming to strengthen risk control in the sector, according to a government statement. The measures include stricter market access regulations and more rigorous reviews of shareholder qualifications for trust firms. The guidelines also prohibit illegal repayments through the rolling issuance of trust products, a practice often associated with heightened financial risk. These steps align with broader efforts by Chinese regulators to tighten oversight and maintain stability in the financial sector amid ongoing economic challenges. The trust industry, a significant component of China’s shadow banking system, has faced scrutiny in recent years for its role in high-risk financial practices. The new regulations aim to address vulnerabilities and improve overall governance within the sector.