China Net Finance, January 2 (Reporter Lu Kai) When the aftersound of the New Year's bell turns into radio waves, it still lingers in our ears;Each frame of 2023 carries his unique seal, rippling into the far reaches of the universe. Similarly, 2023 belongs to every trustee, why not?This year, the trustee has looked forward to, worried, panicked, and even secretly saddened in the face of people coming and going, and the lights on the building have been secretly sad, but in line with the adherence to the concept of trust, and the maintenance of the dignity of the trustee, the trustee has never retreated, in the past 12 months, the trustee is still holding its backbone, so as to support every inch of time in the future, and this time will eventually disappear in the distant distance.
January: 2022 results of 56 trust companies"**
As in previous years, the most concerned thing in the first month of each year is that trust companies have successively pre-disclosed the main operating data of the previous year in the interbank market, and 2023 will be no exception. As of the end of the month, the average operating income in 2022 was about 14$4.1 billion, up from $18.1 billion in 20210.3 billion yuan, a decrease of 36.2 billion yuan, down 2007%；The average total realized profit is about 85.2 billion yuan, up from 10.2 billion in 2021$8.2 billion, down 23 billion yuan, down 2125%；The average net profit is about 66.7 billion yuan, up from 8.7 billion yuan in 20214.7 billion yuan, a decrease of 17.9 billion yuan, down 2127%。
SDIC Taikang Trust's research report pointed out that in recent years, the trust industry is entering the deep water area of innovation and transformation, and the trust companies are currently in the critical stage of the transformation of old and new kinetic energy, and the new business growth point has not yet matured.
February: At the beginning of the new year, the Trust Supervision Conference focused on risk mitigation.
This month, the 2023 Annual Trust Supervision Work (TV**) Conference was held. The focus of the meeting was to summarize the main problems and risks faced by the current industry, as well as the key work of this year's supervision. At the level of risk mitigation, regulators pointed out that the current risk prevention and control pressure of real estate trusts, credit and government business, channel business and capital pool business is still large. The regulator also highlighted that real estate trusts are still the most risky business area in the industry, and there are still companies that carry out relevant trust business in violation of regulations. In terms of business transformation, regulators said that there are two problems in the innovative business of trust companies: homogeneity and excessive competition at any cost. Trust companies need to lay a solid foundation and abide by the rules at the beginning of innovative business development, so as to contribute to the sustainable development of the industry.
In this regard, Yu Zhi, a trust researcher, said that the trust industry supervision meeting specifically mentioned the risk prevention and control of political and credit business, and the future development of political and credit projects is expected to be more standardized. The standard investment of transformation urban investment bonds is a transformation option for trust companies, and it is difficult to guarantee the investment income of government credit projects.
March: New regulations on the classification of trust business were implemented.
After a year of soliciting opinions, the China Banking and Insurance Regulatory Commission's Document No. 1 in 2023 - Notice on Matters Concerning the Classification of Trust Business of Trust Companies was issued on March 21. Compared with the previous consultation draft, the Notice places asset service trusts in the first category of trust business, improves the definition of relevant business varieties, and puts forward clear requirements for the implementation of the main responsibilities of trust companies and the strengthening of regulatory guidance. The reform of the classification of trust business will be officially implemented on June 1, 2023.
In addition, some trust companies have received the "Notice on Further Strengthening the Standardization and Rectification of Internet Cooperative Loans of Trust Companies" issued by the regulatory authorities this month. The Notice clearly states that trust companies should complete the rectification of the Internet cooperative loan business by May 31, 2023, including re-signing the cooperation agreement and implementing the above-mentioned "three autonomous" bottom-line requirements. The so-called "three autonomy" refers to the perspective of self-management of loan contracts, independent control of information and data, and independent initiation of lending instructions. The Circular encourages trust companies to increase independent risk control measures based on actual business conditions and risk appetite, and standardize the development of Internet cooperative loan business.
April: The China Banking and Insurance Regulatory Commission (CBIRC) issued a document to regulate the establishment of non-local departments in trust companies, requiring rectification to be completed by the end of 2024.
On April 1, the China Banking and Insurance Regulatory Commission (CBIRC) issued the No. 3 Notice on Matters Concerning the Regulation of Non-local Departments of Trust Companies, pointing out that most trust companies lack effective control over non-local departments, which affects the transmission and implementation of regulatory policies, brings challenges to financial supervision, and even weakens the function of some trusts to be registered and domicile. The "Notice" optimizes the cross-regional business model of trust companies, promotes the reform, transformation and development of trust companies, and better serves the real economy by limiting the number of non-local departments of trust companies and requiring trust companies not to set up non-local management headquarters outside the place of residence. The "Notice" requires the trust company to formulate a plan for the relocation of the management headquarters, which will be implemented by the end of 2025.
In this regard, the relevant person in charge of the China Banking and Insurance Regulatory Commission said that the supervision found that trust companies with a large number of non-local departments or a wide layout often have a higher risk level. Therefore, we have set and implemented a limit on the number of non-local departments of trust companies and guided the trust industry to scientifically and prudently lay out non-local departments, which will help prevent industry risks and promote the reform, transformation and development of the industry. We will adjust the requirements for quantity constraints as appropriate. At the same time, it added, trust companies are financial institutions that can operate nationwide. Not setting up departments in other places does not affect the trust company's business in other places.
May: The trust industry made efforts to explore new businesses.
In the same month, a series of trust companies announced that they would deploy or have business in insurance trusts. China Resources Trust and Taiping Life Insurance announced the start of comprehensive cooperation in the field of insurance trustsPICC Life Insurance announced that it had signed a large trust order of 100 million yuan with China Chengxin TrustShanghai Rural Commercial Bank cooperated with Shanghai Trust Xinrui Family Office to implement the bank's first insurance trust business. According to incomplete statistics, there are currently more than 30 trust companies and more than 40 insurance companies to carry out related services, and large orders of hundreds of millions of yuan and innovative scenarios are frequent.
During the same period, Chongqing Trust was selected as the trustee of the trust plan for the substantive merger and reorganization of 35 enterprises including Shin Kong Holding Group. According to incomplete statistics, the scale of trust business of risk disposal services in the trust industry in 2022 will be about 15 trillion yuan, and it is expected that the market demand for market-oriented restructuring and bankruptcy service trusts will reach 10 trillion yuan in 2030. At present, at least 15 trust companies have disclosed their business exploration and transformation in the field of risk management service trusts.
On May 12, Shanghai Trust cooperated with Dongfang ** to carry out family service trust business, realizing the landing of the first channel cooperation. Centaline Trust Hengrui Series Family Service Trust was officially launched on June 1. A number of trust companies such as Huabao Trust, Braim Trust, and Minmetals Trust have landed the first family service trust business.
June: Li Yunze presided over a part of the trust meeting to listen to the transformation proposals.
On June 7, Li Yunze, Secretary of the Party Committee and Director of the State Administration of Financial Regulation, went to Shanghai for investigation. During the investigation, Li Yunze presided over a symposium of some Chinese-funded financial institutions in Shanghai to understand the operation of institutions and the service of the real economy. In the meeting of some trust, asset management and wealth management companies, Li Yunze listened to opinions and suggestions on the transformation and development of the industry. It pointed out that trust companies should vigorously cultivate and enhance the core competitiveness of the industry in accordance with the principles of sticking to positioning, returning to the origin, market orientation, and differentiated development. We will continue to improve the level of governance, strengthen professional capacity building, and strengthen the suitability management of investors, so as to better meet the multi-level and diversified wealth management needs of the people.
At the same time, Li Yunze asked the financial regulatory authorities to revise and improve the relevant policies and systems in a timely manner to create a good environment for the long-term healthy development of the industry.
July: In the first half of the year, the pressure of industry transformation was highlighted, and there are still broad prospects for development.
In the first half of 2023, 54 trust companies according to comparable statistics achieved operating income of 5224.7 billion yuan, down 433%；Net profit 2698.2 billion yuan, a year-on-year increase of 228%。Judging from this data, compared with 2022, the decline in revenue and net profit of the trust industry has narrowed significantly.
In the same period, 21 of the 54 trust companies achieved positive net profit growth, and 15 had a growth rate of more than 10%.As many as 25 companies saw a decline in net profit of more than 20%, and 14 companies had a decline of more than 50%. From the perspective of the interval distribution of net profit, there are 17 trust companies with a net profit of more than 500 million yuan in the first half of 2023, a year-on-year decrease of 3, and the net profit of these 17 trust companies accounts for nearly 80%. Nearly 80% of the industry's net profit is created by the top 30% trust companies, and the head companies have obvious advantages, and the differentiation of trust companies is further intensified.
In this regard, Huaxin Trust said that the performance of the trust industry continues to be under pressure, revenue and net profit are still facing greater growth pressure, and new performance growth points need to be cultivated.
At present, the trust industry is facing certain pressure to maintain scale, and how to fully explore the advantages of the industry and improve the ability of asset management services will become the key to breaking the situation in the transformation stage. The 2023 China Trust Industry Annual Conference requires that in the next step, trust companies should re-examine, plan and act in the following aspects: First, explore sustainable business models. Second, we will continue to improve corporate governance. Third, we must effectively prevent and control risks. Fourth, it is necessary to strengthen the construction of the talent team. Fifth, truly practice the concept of ESG. It is necessary to fully understand the importance of ESG concepts and actions, truly practice ESG concepts in all aspects of strategy, culture and business, enhance the good image of the company and the industry, and solidify and strengthen the trust and confidence of the market.
August: The regulator solicited opinions on the application of the Measures for the Administration of Trust Companies.
The regulatory authorities solicit opinions from trust companies on the application of the Measures for the Administration of Trust Companies. It is reported that the "Measures" were formulated in 2007 and have been implemented for more than 16 years as the basic regulations to regulate the functional positioning, operation and management of trust companies. The reason for soliciting amendments is that the original "Measures" have been implemented for a long time, and many changes have taken place in the industry and regulatory situation, and the new "Measures" need to adapt to the new regulatory requirements and the actual problems in the development of the industry, match the latest regulatory spirit, better adapt to other rules and regulations, and promote the high-quality development and transformation of the industry. In order to do a good job in the post-evaluation, revision and improvement of the regulatory system, and give full play to the role of the Measures in guaranteeing the high-quality development of the trust industry, the regulatory organization trust company has sorted out the problems in the application of the Measures in combination with its daily business practice, and put forward opinions and suggestions on the revision and improvement of the Measures.
Industry insiders said that soliciting opinions on revisions is likely to cooperate with the introduction of the three classifications of trust business, and the business transformation of the trust industry has been significantly different from the non-standard business in the past, so it is necessary to adapt to the basic regulatory documents of the trust industry. Trust companies may have requests for modification in terms of branch settings, self-owned assets and trust asset management.
An insider of the Southern Trust Company told reporters: "After the three classifications of trust business, the "Measures" have some lag. The regulator is open-minded and allows trust companies to propose some changes they wish to make according to their own needs. ”
September: The balance of trust assets in the first half of the year was 2169 trillion yuan.
According to the main business data of trust companies at the end of the second quarter released by the China Trust Association, as of the first half of this year, the balance of trust assets was 2169 trillion yuan, an increase of 469.9 billion yuan from the end of March, a month-on-month increase of 221%, an increase of 576.9 billion yuan over the same period of the previous year, a year-on-year increase of 273%。However, the operating performance of the trust industry is still facing downward pressure, with operating income, total profit and per capita profit all declining significantly year-on-year. As of the end of the second quarter, the trust industry achieved a total operating income of 4734.6 billion yuan, down 2139%；The total realized profit was 2802.2 billion yuan, a year-on-year decrease of 2921%；The per capita net profit was 9970,000 yuan, a year-on-year decrease of 2460%。
In the context of the transformation of China's economic momentum and the deepening of financial reform, the trust industry is facing the challenge of transforming its development mode, optimizing its business structure, and transforming its growth momentum. However, on the whole, the overall risk of the trust industry is controllable, and it is expected to usher in a turning point in the industry under the "three classifications of trust business".
In general, the trust industry is still in a period of deep adjustment, and it will take some time for the relevant revenue indicators to be restored. In the future, trust companies should combine their own resource endowment advantages, focus on the latest business classification direction of supervision, continue to improve their comprehensive capabilities, and form their own differentiated development model, which puts forward higher requirements for the operation and management of trust companies.
October: The risk disposal of individual trust companies has been included in the financial work report.
On October 21, at the sixth meeting of the Standing Committee of the 14th National People's Congress, Pan Gongsheng, governor of the People's Bank of China, made a "Report on Financial Work." Among them, it focuses on the prevention and resolution of financial risks, promotes key areas and key institutions to accelerate the reform and risk reduction, formulates and improves risk mitigation plans, strengthens risk monitoring and early warning, and orderly promotes the follow-up disposal of risks such as Henan Anhui village and town banks. Accelerate the disposal of high-risk insurance trust institutions such as Evergrande Life Insurance and Zhongrong Trust.
November: The State Administration of Financial Supervision and Administration issued the Interim Measures for the Supervision and Grading of Trust Companies.
In the same month, the State Administration of Financial Supervision and Administration issued a notice on the issuance of the Interim Measures for the Supervision of Trust Companies on Ratings and Classification (hereinafter referred to as the "New Rating Regulations"). The New Rating Regulations re-standardize the hierarchical and classified supervision of trust companies, and set up five rating modules: corporate governance, capital requirements, risk management, behavior management and business transformationThe regulatory rating results of trust companies are divided into 1-6 levels, and the larger the value, the greater the risk of the institution, and the higher the degree of regulatory attention. An industry executive bluntly said that classified supervision is a good thing, but the premise is that the business supervision standards are unified across provinces.
A relevant person from the State Administration of Financial Supervision said that, on the whole, it is necessary to formulate more complete regulatory rating rules for trust companies, fully reflect the current operating characteristics, risk characteristics and regulatory priorities of trust companies, strengthen the use of regulatory rating results, and guide trust companies to further strengthen risk management and behavior management based on the position of trustees.
The reporter noted that the issuance and implementation of the "New Rating Regulations" is an important measure to implement the first financial work conference on "effectively improving the effectiveness of financial supervision", which will further improve the regulatory rating rules of trust companies, enhance the pertinence and effectiveness of the hierarchical and classified supervision of trust companies, and help accelerate the transformation and development of the trust industry and continue to improve the quality and efficiency of serving the real economy.
December: Li Qiang (Chairman of Foreign Trade Trust) was elected as the new president of the Trust Industry Association.
At the end of the month, the first meeting of the 5th General Assembly (the 40th General Meeting, hereinafter referred to as the "Meeting") of the Trust Industry Association (hereinafter referred to as the "Association") was held in Beijing. The meeting deliberated and approved the Articles of Association of China Trust Association (Pre-examination Draft), the Work Report of the Fourth Council of China Trust Association, the Financial Report of the Fourth Council of China Trust Association, and the Work Report of the Second Board of Supervisors of China Trust Association, and held a general election.
The meeting elected Li Qiang (Chairman of Foreign Trade Trust) as the new president of the association, Yu Huajun (Secretary of the Party Committee and Chairman of Yingda Trust) as the new chairman of the board of supervisors of the association, Liu Feng (Secretary of the Party Committee of the Association) as the new full-time vice president of the association (standing affairs), Yan Jiandong (member of the Party Committee of the Association), Wang Yabin (member of the Party Committee of the Association), Chen Jiaoxia (member of the Party Committee of the Association) as the new full-time vice president of the association, Sun Lei (Secretary of the Party Committee and Chairman of Huaneng Trust), Liu Xiaola (Secretary of the Party Committee and Chairman of China Resources Trust), Hu Jun ( Secretary of the Party Committee and Chairman of Jiangsu Trust), Chen Bing (Secretary of the Party Committee and General Manager of Shanghai Trust), Sun Qingwen (Deputy Secretary of the Party Committee and President of CCB Trust), Wang Zhuo (Deputy Secretary of the Party Committee and General Manager of Minmetals Trust), Tu Yikai (Deputy General Manager of CITIC Trust), Zhang Zhongchao (Member of the Party Committee, Assistant to the General Manager and Secretary of the Board of Directors of Ping An Trust) are the new vice presidents of the Association, and Chen Yanmei (Member of the Party Committee of the Association) is the new Secretary-General of the Association.
Looking forward to the future, the association will further improve its political position, adhere to the party's overall leadership over financial work, conscientiously implement the work deployment of the first financial work conference, conscientiously implement the specific requirements of the Party Committee of the State Financial Supervision and Administration on financial work, and do a good job in the trust industryWe will further identify the functional positioning, strengthen self-construction, help the trust industry grasp the political and people's nature of financial work, adhere to the principle of "seeking profit from righteousness", return to the origin of business, achieve high-quality development, and contribute to the construction of a financial power.
Summary: Indisputable and persistent.
In the expectation aroused by the general election of the association, the trust industry in 2023 will be silently sticking to it, using the tolerant trust concept to guard the courage of the trust industry to gradually transform and grow, and pack up the equipment, and explore the most suitable ecological niche for its own long-term development in the indisputable.
Looking back on 2023 through the fallen leaves scattered in the long river of time, the trust industry, as one of the four branches of China's financial industry, is transforming and developing in a more mature, standardized and professional direction after rectification. Now, with the convening of the "National Financial Work Conference" upgraded to the "** Financial Conference", under the guidance of the goal of accelerating the construction of a financial power, the trust industry is determined to establish first and then break down, waiting for another autumn to come, and is also accumulating strength for the next round of cycle.