(Page 2 of 4)  China Shanghai Stock Exchange Smoker Investor
Chinese   Not only is the trust industry highly leveraged, but
also highly concentrated. Of the 62 Chinese investment trusts,
10 of them account for half of all assets under management
industry-wide, and 20 account for 72 percent.  The huge issue in
Cui's mind is the total lack of transparency in the investment
trust industry. Only 2 of those 62 companies are required to
disclose any sort of investment returns. This leads to
investment "pooling," wherein a trust will take an investor's
money and invest it in multiple projects at the same time.  The
problem is that the investment trusts don't really have to
disclose any sort of detail on the investments in the pool,
either. And Cui says that "some local experts think the share of
pooled products in total trust assets may surge from 5% in 2011
to 30-40% by the end of 2012."  Bottom line: If property prices
and other investments turn sour and highly-leveraged, highly-
concentrated investment trusts have