In 2021, the historical risks of the trust industry are still clearing up rapidly. According to the latest monitoring data obtained from research institutions by Beijing Business Daily on April 6, in the first quarter of this year, there were 65 cases of default in the trust industry. Although the number of default cases further increased compared with the first quarter of 2020, the amount of default projects decreased by 33.69% compared with the same period last year. In the process of accelerating the clearing of risk exposure, in the first quarter of this year, the number of fines in the trust industry also hit the highest level over the years. In the view of analysts, with the improvement of the trust company’s governance mechanism and the improvement of the operation and management level, combined with strict external supervision, it is expected that the default situation of subsequent trust products will be lower.
Increase in quantity and decrease in amount
On April 6, according to the latest monitoring data of usufruct trust, there were 65 cases of default in the trust industry in the first quarter of 2021, with the amount of default reaching 27.828 billion yuan.
In January, the number of defaults was the highest, with 27 defaults in that month, and the amount of defaults reached about 9.829 billion yuan; in February, the number of defaults declined, with 21 defaults in that month, and the amount of defaults was about 8.187 billion yuan; in March, although the number of defaults further decreased to 17, the amount of defaults in that month reached the highest in the first quarter, about 9.842 billion yuan.
From the statistical data, trust product defaults are still mainly concentrated in the real estate and industrial and commercial enterprises; in the first quarter, there were 20 default events in the real estate field, with the amount of default as high as about 11.576 billion yuan, ranking the first; most of the large defaulters still exist in industrial and commercial enterprises, with a total of 15 default events in the first quarter, with the amount of default as about 9.831 billion yuan; although the basic industry is in breach of contract The number is high, reaching 18 cases, but the amount of default is low. The amount of default of basic industries in the first quarter is about 3.487 billion yuan.
Back to the first quarter of 2020, there were 62 default events in the trust industry, and the amount of default reached 41.967 billion yuan. From a year-on-year perspective, although the number of defaults in the trust industry rose in the first quarter of this year, the amount of default has decreased significantly.
Referring to the default performance of the trust industry in the first quarter of this year, Shuai guorang, a researcher of usufruct trust, said in an interview with Beijing business daily, It can be seen that the scale of trust product default has fallen sharply, which indicates that the trust industry risk has been gradually released; with the improvement of trust company governance mechanism and the improvement of operation and management level, combined with strict external supervision, it is expected that the subsequent trust product default is expected to decline.
Tickets set new record
In the process of speeding up the clearing of risk exposure, the fines also came with the event of default. In the first quarter of this year, the fines of the trust industry also reached the highest level over the years. According to the statistics of administrative punishment information of the CIRC, Beijing Business Daily found that since the beginning of the year, nine trust companies, including Daye trust, Tianjin Trust, ZHEJIN trust, Sichuan trust, Great Wall Xinsheng trust, Suzhou trust, Guotong trust, China construction investment trust and CITIC Trust, have been fined, with a total fine of 40.25 million yuan, far exceeding the 15 million yuan in the same period of last year, a record high over the years.
Daye trust recently received a million level fine. On March 29, Guangdong banking and Insurance Regulatory Bureau released an administrative penalty information. Daye trust was fined 1.15 million yuan for violating regulatory requirements in terms of leverage ratio of structured securities investment trust products, carrying out personal trust loan business in violation of regulations, and carrying out bank trust cooperation business in violation of regulations. At the same time, the supervision implemented the double punishment system, and two relevant responsible persons of the company were fined 50000 yuan and warned respectively. For the follow-up rectification measures for the problem of being punished, a reporter from Beijing Business Daily called Daye trust for an interview, but as of press release, no reply has been received.
Among the numerous tickets, Sichuan trust was fined the highest amount, 34.9 million yuan, a new high. The company was punished for 13 illegal issues such as investing different trust plans under management in the same project, more than 50 natural persons with a single trust plan entrusted amount less than 3 million yuan after penetration, and illegal promotion of TOT collective fund trust plan.
Among the small fines of less than one million, China Construction Investment Trust has some problems, such as “lax pre loan and post loan review leads to large amount of trust loan fund flowing back to the borrower’s account in other banks, and eventually leads to the inconsistency between the loan fund use and the trust loan contract agreement”; China Communications trust is punished for not using the trust fund according to the agreed use, and the risk project of fund pool prepayment does not make provision for impairment as required; Su The transfer of credit assets in state trust seriously violates the principle of prudent operation.
In the view of Liao Hekai, an analyst of Jinle function, the number of tickets is related to the normalization of strict law enforcement in recent years, and is also highly related to the exposure of risk projects. In the process of risk project exposure, it is often accompanied by the process of regulatory intervention and punishment. With the peak of risk clearing, this year’s fines are expected to remain high, but show a process of high before low, which is expected to last for many years, and the asset quality of the trust industry will continue to accelerate after 2022.
Shuai guorang further pointed out that the new record of fines shows that the situation of strict supervision has not changed. At the same time, it also shows that trust companies have violated laws and regulations in the past, ignored the prevention of risks, and there is chaos in corporate governance. It is expected that strong supervision will continue in the future, and tickets will still exist.
Strengthen the construction of middle and back office system
Reviewing the regulatory roadmap of the trust industry, in 2017, the China Banking and Insurance Regulatory Commission launched a campaign to crack down on violations of laws and regulations and rectify market chaos. At that time, the trust industry was included. In 2017, the regulatory focus was on whether shareholders directly or indirectly invested in insurance companies through trust funds.
In the three years from 2018 to 2020, the regulatory scope of the trust industry will be further expanded. In 2018, the regulatory focus will be on the investment of wealth management funds in equity financial products or financial products with equity characteristics through trust products, but the standards for qualified investors are not strictly implemented. In 2019, the supervision mainly prohibited the real estate business of the trust industry from providing financing in disguised form, such as incomplete four certificates, substandard funds, explicit shares and real debts, and accounts receivable.
In the special rectification in 2020, the areas highlighted by the CIRC are still in the field of real estate, mainly increasing the use of funds for real estate development in the name of granting loans to upstream and downstream enterprises of developers, related parties or construction parties, so as to avoid the regulatory requirements of real estate trust loans.
In the view of analysts, 2021 is a year of continuous deepening of strict supervision of the trust industry, and the extensive growth that has lasted for many years is no longer sustainable.
“At present, trust companies have been actively seeking transformation under the guidance of regulatory business. Most market-oriented companies are improving their capital strength, strengthening their coping ability in the transformation period, improving their personnel composition and organizational structure, and constantly promoting the improvement of their investment business ability.” Liao Hekai said frankly that the trust company should change the idea of extensive operation, change the development idea, get rid of the path of making fast money and easy money, improve the service consciousness more, do a good job in serving the trust, serve the real economy well, and make the wealth management business bigger and stronger; it should give more play to the advantages of the intellectual intensive enterprises, and reduce the number of ways to get rid of the shadow banking business and channel according to the regulatory plan Only by increasing the scale of business, the ability of risk management and control, and the construction of the middle and back office system, can we stand out in the capital intensive industry.
Beijing Business Daily reporter Meng fanxia song Yitong
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