New loans jointly issued by the trust companies and commercial banks in April increased 580 billion yuan ($84.97 billion) to 1.88 trillion. It accounted for 75 percent of the new yuan-dominated lending in the month, which was 774 billion yuan, the paper said, quoting an unnamed source close to the regulator.

The China Banking Regulatory Commission (CBRC) worried that without effective controls, the loans would surpass 7.5 trillion, the government's full-year lending target, at the end of this year.

The paper said CBRC held a meeting with 12 big trust companies, including Zhongrong International Trust Co, Citic Trust, Zhonghai Trust Co and Ping An Trust & Investment Co on June 1, requiring those companies to tighten loans jointly extended with banks.

The regulator also required trust companies to implement self-review on such loans immediately and said to launch spot inspections later.

Theregulator warned thatstricter measures would be taken if the growth were not controlled effectively by the end of June, the paper said, citing the source.