The trust industry has entered a period of transformation and family trusts have sprung up
Our reporter Xing Meng
In the past year, regulators frequently implemented regulatory measures to strongly guide the transformation of the trust industry.
In 2020, the total scale of trust assets will fall to 20.49 trillion yuan, a decrease of 5.76 trillion yuan compared to the historical peak in 2017, further transforming from rapid growth to high-quality development.
Judging from the situation this year, the scale of trust assets has fallen below 20 trillion yuan, and the continued shrinking of the scale reflects the pressure of industry transformation.
In 2020, the trust industry has entered a period of transformation, and overall profits have declined.
Judging from the 62 trust companies that have disclosed their performance, the total net profit was 49.1 billion yuan, a year-on-year decrease of 9.24%.
At the same time, the strong Hengqiang's Matthew effect is highlighted. In 2020, the top 10 trust companies in the industry will have a total net profit of 25.1 billion yuan, accounting for half of the industry's total net profit.
Under the situation of limited traditional exhibition industry, active management ability has become the key to trust business.
According to data from China Trust Registration Co., Ltd. (hereinafter referred to as "CITIC Deng"), as of the end of last year, the scale of active management trusts exceeded 10 trillion yuan, accounting for nearly 52%, and a year-on-year growth rate of 23%.
Eight companies, including Minsheng Trust, Dongguan Trust, and Bairui Trust, account for more than 80% of the scale of active management trusts.
At the same time, the emergence of service trusts such as family trusts has brought new growth points to pioneer companies with early deployment and large investments.
Relevant data show that the scale of industry family trusts at the end of 2020 will increase by 80% from the beginning of the year.
The actual assets of CCB Trust's family trusts exceeded 65 billion yuan, and the cumulative entrusted assets of CITIC Trust's family trusts and insurance trusts were nearly 50 billion yuan.
Two-thirds of trust companies have shrunk
5 companies each drop more than 100 billion yuan
The total scale of trust assets in the industry has declined for three consecutive years, from a historical peak of 26.25 trillion yuan in 2017 to 20.49 trillion yuan in 2020.
According to data released by China's trust industry, as of the end of the fourth quarter of 2020, the scale of trust assets was 20.49 trillion yuan, a year-on-year decrease of 5.17%, a decrease of 1.12 trillion yuan from the end of the fourth quarter of 2019, and a decrease from the historical peak at the end of the fourth quarter of 2017 5.76 trillion yuan.
"Behind the decline in the scale of trust assets is related to the industry's continued pressure drop in financing and channel businesses." Yin Xingmin, director of the Trust Research Center of Fudan University, said that under the strict regulatory environment in 2020, the scale of channel businesses will continue to decline, and financing trusts will be compressed. Nearly 1 trillion yuan.
From 2018 to 2020, there will be three consecutive years of pressure drop for transaction management trusts: a pressure drop of 2.4 trillion yuan in 2018, a pressure drop of 2.6 trillion yuan in 2019, and a pressure drop of 1.46 trillion yuan in 2020.
At the same time, as of the end of 2020, the balance of financing trusts was 4.86 trillion yuan, a total pressure drop of nearly 1 trillion yuan throughout the year.
Yin Xingmin analyzed that most of the pressure-dropped transaction management trusts are financial inter-bank channel businesses characterized by regulatory arbitrage and hidden risks.
In accordance with the requirements of regulatory authorities, the business volume and proportion of transaction management trusts have been declining, and the phenomenon of multi-level nesting and idling of funds among financial institutions has been significantly reduced.
In the long run, the gradual reduction of financing trusts is the transformation goal of trust companies to return to their roots.
"Two pressures and one drop" has become a fundamental indicator for trust companies to comply with supervision.
The annual report data of Usufruct Trust Statistics shows that as of May 7, 62 of the 68 trust companies have disclosed their 2020 performance, of which 42 trust assets have declined to varying degrees, accounting for 67.74%.
The five largest year-on-year declines were CITIC Trust, Industrial Trust, Minmetals Trust, Bohai Trust, and Bank of Communications Trust, with an annual decline of more than 100 billion yuan.
Specifically, as of the end of 2020, the scale of CITIC Trust’s trust assets was 1.22 trillion yuan, a decrease of about 350 billion yuan from the 1.57 trillion yuan in 2019.
From a longer-term perspective, compared with the historical peak of 1.98 trillion yuan in 2017, CITIC Trust’s asset scale has dropped by more than 700 billion yuan; the trust asset scale of Industrial Trust and Minmetals Trust has both fallen by more than 180 billion yuan year-on-year; The data of Bohai Trust and Bank of Communications Trust were 158.8 billion yuan and 131.2 billion yuan respectively.
Judging from the situation this year, it may be a fact that the scale of trust assets continues to decline.
According to the latest data from CITIC Deng, as of the end of January 2021, the industry-wide trust product stock scale has fallen to 19.99 trillion yuan. This is the first time since the trust asset scale exceeded 20 trillion yuan in 2016 that it has returned to below 20 trillion yuan. .
CITIC Deng said that this means that the regulatory authorities require that in 2021 continue to reduce the scale of the trust's existence channel business, gradually reduce the financing trust business with outstanding risks of "shadow banking", and continue to clean up the "two aspects" of the trust non-standard fund pool business. New substantive results have been achieved in the work of "pressure-drop".
The total net profit of 62 companies is 49.109 billion yuan
Year-on-year decrease of 9.24%
The continued pressure drop in the scale of trust assets has put pressure on the performance of trust companies.
According to statistics related to usufruct trust, in 2020, based on the statistics of the parent company, the total net profit of 62 trust companies was 49.109 billion yuan, which was 9.24% lower than the 54.107 billion yuan in 2019.
What is noticeable is that the Matthew effect of Hengqiang, a strong player in the trust industry, was prominent last year. The top 10 companies accounted for more than half of the industry's total net profit.
The data shows that Huaneng Trust, Ping An Trust, and Minmetals Trust are among the top three in the industry's net profit, and the net profit of the first two exceeds 3 billion yuan.
The total net profit of the top ten trust companies in 2020 is 25.081 billion yuan, accounting for 51.07% of the total net profit of 62 trust companies in the industry.
In contrast, the net profit of the 10 companies in 2019 was 25.273 billion yuan, accounting for 46.71%.
It can be seen that the net profit of the trust industry in 2020 will increasingly concentrate on leading companies.
"Each trust company has different resource endowments, and some companies with strong comprehensive strength and stable operations gradually stand out. Leading companies rely on first-mover advantages to break out first, thereby further enhancing their core competitiveness." A reporter from the Daily said.
At the same time, the performance differentiation in the industry is obvious, and small and medium trust companies face greater pressure to survive.
Jilin Trust, Huachen Trust, Shanxi Trust, Bohai Trust and other tail companies will only have a net profit of between 10 million and 40 million yuan in 2020, and Great Wall Trust, Minsheng Trust, and Anxin Trust are even losing money.
"The trend of differentiation has been the main development characteristic of trust companies in recent years. This characteristic is common in other asset management institutions or financial industries." Asset management industry researcher Yuan Jiwei analyzed to the "Securities Daily" reporter. On the one hand, the external environment The complexity and changeability, especially the risk factors, puts a greater test on the operation of trust companies, and some small and medium-sized trust companies have weak risk resistance capabilities.
On the other hand, the trust industry is in a critical period of transformation. Large-scale trust companies have clearer ideas for transformation, greater investment in resources, and effective results. However, small and medium-sized trust companies are relatively lagging in this regard, traditional business growth is limited, and development motivation is insufficient.
Yuan Jiwei further stated, “Small and medium-sized trust companies still have ways to narrow the gap with leading trust companies. This requires a selection of business tracks to achieve professional development, as well as innovative tools such as financial technology to achieve characteristic development and model breakthroughs. "
In addition, increasing the provision of trust compensation has become a common choice for trust companies to cope with the pressure of transformation.
According to data released by the Trust Industry Association, as of the end of the fourth quarter of 2020, the trust compensation reserve was 32.154 billion yuan, an increase of 10.40% from the 29.124 billion yuan at the end of the fourth quarter of 2019, and an increase of 8.54% from the 29.623 billion yuan at the end of the third quarter. .
The industry's active management scale accounts for nearly 52%
8 companies accounted for more than 80%
With the further advancement of industry transformation, active management business has become the core weapon to seize the advantage of transformation.
"Generally speaking, the rate of return of actively managed trusts is higher than that of passively managed trusts. Trust companies vigorously develop active management trusts, which has a positive effect on improving their own income, profits and management capabilities." Wei Wenzhen, researcher at the Postdoctoral Research Station of Bairui Trust Jie told the "Securities Daily" reporter.
According to the data regularly submitted by CITIC Deng Trust’s beneficial rights information, the scale of active management products in the trust industry will exceed 10 trillion yuan at the end of 2020, a year-on-year increase of 23%.
In terms of quarterly changes, the quarter-on-quarter growth rates of the four quarters were 5.21%, 5.67%, 8.58%, and 1.86% respectively, and their proportion increased from 44.12% at the end of the first quarter to 51.61% at the end of the fourth quarter; the scale of non-active management decreased from the beginning of the year. 18.83%, accounting for less than 50%.
CITIC Deng believes that this shows that under the background of new asset management regulations that unify asset management product regulatory standards, promote net worth management, and accelerate "non-standard conversion", the trust industry is complying with the regulatory guidance, improving professional management capabilities, and actively seeking its roots. Continued efforts in business transformation and development.
Wei Wenzhenjie believes that the active management business of trust companies can be divided into real estate, government and information, consumer finance, and securities investment.
Taking the securities investment business as an example, trust companies should learn from securities firms, public funds and other institutions on the construction experience of investment research systems, focus on improving investment research capabilities, explore active management businesses, and develop competitive and differentiated products.
"Under the background of the pressure drop in financing and the imminent zero-clearing of financial inter-industry, trust companies need to strengthen active management business, thicken the foundation for development, and increase profitability." Yuan Jiwei said that trust companies need to improve their investment and research systems and strengthen their active management capabilities. Improve the professional level, accurately grasp the market and industry development trends, and effectively capture business opportunities.
In recent years, the active management transformation of the head trust company has achieved initial results.
CITIC Trust’s annual report shows that the proportion of its actively managed assets has risen from 24% in 2017 to 54% in 2020.
Judging from the 2020 annual report, 8 companies including Minsheng Trust, Dongguan Trust, Bairui Trust, Essence Trust, Zhongrong Trust, Hangzhou Industrial and Commercial Trust, Minmetals Trust, and AVIC Trust account for more than 80% of the scale of active management trusts. , Far exceeding the overall level of the industry.
However, it should also be noted that among the 62 trust companies, as many as 30 companies still have an active management trust scale that is lower than the overall industry level (51.61%).
Yuan Jiwei emphasized, “We cannot judge the strength of trust companies' active management capabilities only by the proportion of active management business scale, but also need to truly accept the test of cyclical fluctuations. In the past, individual trust companies had a high proportion of active management business, but they did not withstand the cycle. Inspections have created greater risk exposures. Therefore, trust companies need to make real efforts to build their professional capabilities, professionalism, risk management and control, project management and other business capabilities to shape the core competitiveness of the market and create maximum value for investors. ."
Service trust becomes the direction of transformation
Family trust increased by more than 80% throughout the year
In 2020, service trusts such as family trusts and asset securitization have performed well, becoming an important exploration direction for trust transformation.
According to relevant data from CITIC Deng, as of the end of 2020, the size of family trusts has increased by 80.29% compared with the beginning of the year, and has increased for four consecutive quarters, with a month-on-month increase of 11.2%, 8.34%, 35.94% and 10.09%.
The scale of family trust business of CCB Trust, Shandong Trust, Zhongrong Trust, and CITIC Trust ranks in the top, with the four accounting for more than 60% of the total.
According to relevant annual reports, as of the end of 2020, the scale of real-time assets of CCB Trust's family trust exceeded 65 billion yuan; CITIC Trust has more than 3,000 family trust and insurance gold trust customers, with a cumulative entrusted asset scale of nearly 50 billion yuan, a year-on-year increase of 44%; The family trust managed by Shandong Trust has signed a contract value exceeding RMB 14.95 billion, of which the actual trust assets delivered amounted to RMB 14.525 billion, a year-on-year increase of 43.81%.
According to the above data, the scale of asset securitization products at the end of 2020 is about 2.5 trillion yuan, an increase of 57.37% from the beginning of the year. Among them, the fourth quarter has the largest quarter-on-quarter increase of 27.29%.
At present, 44 trust companies have carried out asset securitization business. Among them, the top three trust institutions (CCB Trust, Huaneng Trust, China Resources Trust) account for more than 50% of the total asset securitization business, and the head effect is more obvious.
CCB Trust stated in its annual report that the cumulative issuance scale of the company's asset securitization business exceeded one trillion yuan. In 2020, the issuance scale, cumulative issuance scale, and stock scale all ranked first in the market with obvious advantages.
Shuai Guorang said, "Asset securitization is an important direction for trust companies' business transformation. Under the regulatory guidance of'two pressures and one drop', it has become an industry consensus to continue to promote the transformation of trust companies' net worth and focus on standardized asset investment."
China Chengxin Trust Strategy Research Department believes that the value of business linkage has become increasingly prominent, and trust companies should further dig deeper into the linkage value of asset securitization business issuance, underwriting, and investment, and open up the asset management and investment banking links in the asset securitization business chain.
From the perspective of actual operation, the development of the investment link has greatly contributed to the growth of the underwriting scale, and the addition of the underwriting link has effectively improved the overall performance contribution of the asset securitization business.