A few days ago, a number of trust companies received guidance from regulatory authorities, requiring strict reduction in the scale of financing trust business and ensuring the completion of previously set pressure reduction tasks.
Why do you want to reduce this type of business?
Regulatory said that from the perspective of specific businesses such as financing trusts, the broad financing trust includes both channel financing trust business and financing trust business actively managed by trust companies.
Regulators believe that businesses that require key pressure reduction include: first, various financial institutions use trust channels to carry out regulatory arbitrage and financing businesses that circumvent policy restrictions; second, trust companies deviate from the position of trustees and use themselves as "credit intermediaries." The actual risk is borne by the trust company and the financing business carried out in violation of laws and regulations.
The head of the relevant department of the China Banking and Insurance Regulatory Commission stated that the regulatory policy will not stop trust companies from carrying out financing trust businesses across the board, but will gradually reduce the scale of illegal financing businesses and urge them to optimize their business structure until the trust company can rely on the original business to support its business development .
In the future, financing trust business will be more carried out by trust companies with standardized management, strong risk control capabilities, and strong capital strength to ensure that the entrusted duties are in place and business risks are controllable.
While the pressure in the financing of trust business has fallen, this year's trust industry has clearly served the real economy.
Data shows that in the first three quarters of 2020, the scale of the trust industry continued to steadily drop, and the trust industry has served the real economy with significant results. More than half of the trust funds are directly invested in the real economy, which has played a positive role in promoting economic recovery.
According to Li Shuigen, a staff member of China Xindeng, the first three quarters of data show that service trusts are the new development direction of the trust industry. The cumulative initial fundraising scale is about 3.25 trillion yuan, including asset securitization trusts, family trusts, and insurance trusts. And enterprise annuity trust continued to develop.
In addition, the scale of trust funds invested in real estate continues to shrink, and industrial and commercial enterprises have become the main investment destination of trust funds. The new trust funds invested in industrial and commercial enterprises exceeded 200 billion yuan at the end of the third quarter, accounting for more than 40% of the total scale of new trusts. The scale of investment in real estate at the end of the quarter was less than 50 billion yuan.
Yin Xingmin, director of the Trust Research Center of Fudan University, said that the current trust industry in accordance with the "six stability" and "six guarantees" requirements, combined with the new crown pneumonia epidemic prevention and control requirements, guide more funds to flow to the real economy.
In the future, the trust industry needs to continue its efforts to serve the manufacturing industry and SMEs.
Yin Xingmin said that the service manufacturing industry is the focus of the trust industry. In the fourth quarter, it is necessary to ensure that more new trust funds flow to the manufacturing industry.
Yin Xingmin believes that the trust industry is an important new force in serving small and medium-sized enterprises, stabilizing employment, and promoting stable economic development.
"In terms of quantity, small and medium-sized enterprises are the largest group of market entities. Increasing financial support for small and medium-sized enterprises and private enterprises, and promoting inclusive finance in accordance with local conditions is one of the important paths for structural reforms on the financial supply side. Trust companies can use Deeply excavate the actual needs of small and medium-sized enterprises in the upstream and downstream of each industry chain, design flexible and diverse financial models, and continuously carry out trust product iteration and service innovation to promote the improvement of service small and medium-sized enterprises from quantity to quality." Yin Xingmin said.
Our reporter Peng Jiang