The troubles at Sichuan Trust are a microcosm of the strain spreading through China’s £2.3tn trust industry as an economic downturn, combined with tighter government regulation, risks torpedoing a major part of the “shadow” banking industry that has filled the gaps left by traditional financial institutions.

Several investors wrote to China’s National Administration of Financial Regulation, demanding to know what assets were ­underlying the trusts’ investments. But in January the authorities refused, ­saying that the information was a “state secret”.

Chinese Trusts have disproportionately helped to finance the country’s real estate boom, which since 2008 has been one of the main drivers of its economic growth. That makes them particularly vulnerable to contagion from the current downward spiral in the property market. According to the publicly available financial statements, between 6% and 7% of their lending is to real estate. But some experts estimate the exposure is more like 30-35%, with lending often disguised under other structures or industries.