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Trust but not trustworthy? The bankruptcy of Sichuan Trust

Chen Yang

Law and Financial Markets Review2026https://doi.org/10.1080/17521440.2026.2626880article
ABDC B
Weight
0.50

What the paper says

The bankruptcy of Sichuan Trust Co., Ltd. (Sichuan Trust) highlights critical vulnerabilities faced by retail investors within China’s shadow banking sector, arising primarily from limited transparency and inadequate regulatory protections. This paper examines the Sichuan Trust case to explore retail investor vulnerability and to identify regulatory gaps. The paper contends that, while ex post regulatory interventions have facilitated partial restitution for retail investors through structured repayment schemes, the existing ex ante safeguards remain insufficient to prevent such harm in the first place. Drawing from this analysis, the paper advocates for a more proactive regulatory approach emphasising preventive measures, strengthened disclosures, enhanced financial literacy education, and targeted paternalistic protections to ensure retail investor welfare at the pre-investment stage.

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https://doi.org/https://doi.org/10.1080/17521440.2026.2626880

Or copy a formatted citation

@article{chen2026,
  title        = {{Trust but not trustworthy? The bankruptcy of Sichuan Trust}},
  author       = {Chen Yang},
  journal      = {Law and Financial Markets Review},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1080/17521440.2026.2626880},
}

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Trust but not trustworthy? The bankruptcy of Sichuan Trust

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.