Shanghai Stock Exchange Greetings Trust Directly Points to the Four Risks of Default Products

 Shanghai Stock Exchange Greetings Trust Directly Points to the Four Risks of Default Products

Anxin Trust was once again inquired by the Shanghai Stock Exchange.

On the evening of October 11, Anxin Trust (600816.SH) announced that it had received an inquiry letter from the Shanghai Stock Exchange. This Shanghai Stock Exchange focuses on four major issues, including default or deferred payment of products, disclosure of litigation information, related party transactions, and the risk of controlling shareholders trading.

In May this year, the Shanghai Stock Exchange Nine Questions Anxin Trust. In its reply to the announcement, Anxin Trust disclosed that there were 25 trust products with default or deferred payment between January 1, 2018 and May 20, 2019, involving about 11.76 billion yuan.

In this inquiry letter, the Shanghai Stock Exchange requested Anxin Trust and the controlling shareholder Shanghai Guozhijie Investment Development Co., Ltd. (hereinafter referred to as Guozhijie) to verify and disclose the amount and amount of trust products due from May 20 to September 30, 2019, the number and amount of trust products that have breached or delayed payment, and to verify whether the above products have underlying asset risks, and the companys actions What measures have managers taken or intend to take to urge financiers to pay? In view of whether the default of large trust products will have a significant impact on the companys daily operation and sustained profitability, the Shanghai Stock Exchange requires the trust to fully alert the risk.

Up to now, Guo Zhijie holds 2.868 billion shares of Anxin Trust, accounting for 52.44% of the total shares of the company. The actual control is Gaotianguo. According to the semi-annual report of 2019, as of June 30, there were 12 cases involving Anxin Trust as the defendant, and the litigation amount amounted to 5.023 billion yuan, most of which were active management trust plans.

So, is there any form of undertaking in the 5 billion litigation-related trust projects? The Shanghai Stock Exchange requires Anxin Trust to clarify whether there are any undertakings in the related litigation trust business, such as guarantees provided by the company or Guozhijie, long-term assignment, etc. Whether the above litigation may have a significant impact on the company and whether it has fulfilled the obligation of information disclosure according to the regulations.

The Shanghai Stock Exchange also takes note of the affiliated transactions between Anxin Trust and Guozhijie, requests that Anxin Trust verify whether the final capital investment of the stock trust products involves controlling shareholders, actual controllers and their affiliates, whether there is any form of interest transfer, fund occupation or misappropriation of the affiliated parties, and requires Anxin Trust to disclose whether there is compliance risk in the operation of trust business of the company. u3002

According to the interfacial news reporter, behind many trust products established by Anxin Trust are Shanghai Yihe Investment Management Co., Ltd. (hereinafter referred to as Shanghai Yihe) and its affiliated companies, most of which are inferior investors.

Inquiring the public information, the interface journalists found that in addition to the trust project cooperation, the cooperation between Shanghai Yihe and Anxin Trust also includes entering the bank insurance license. In March 2017, Yingkou Bank added eight new corporate shareholders, including Guo Zhijie, Anxin Trust, Shanghai Yihe and Shanghai Huipui Intelligent Technology Co., Ltd., a subsidiary of Shanghai Yihe. At the end of June 2016, Anxin Trust intends to jointly invest in the establishment of Guohe Life Insurance Co., Ltd. with Shanghai Yihe and other five companies, but this application has not been approved so far.

At the same time, Guo Zhijies shares in Anxin Trust have been frozen in large quantities, which has also aroused the attention of the Shanghai Stock Exchange on its control rights. The Shanghai Stock Exchange requires the controlling shareholder Guozhijie to carefully verify and disclose the current solvency of the trust according to its own asset-liability ratio, external guarantee, overdue debts and litigation situation, and to indicate whether the shares held by the controlling shareholder are at risk of judicial disposal and whether it may result in the loss of control over the trust.

In addition, the announcement also disclosed that Guo Zhijie pledged 1.455 billion shares of Anxin Trust to China Trust Industry Guarantee Fund Company (hereinafter referred to as Credit and Insurance Fund) in order to support Anxin Trust in applying for liquidity support, accounting for 26.6% of the total equity of Anxin Trust and 50.73% of its share holdings. According to the semi-annual report of Anxin Trust, as of June 30, 2019, the balance of liquidity support of the credit insurance fund to Anxin Trust was 5.655 billion yuan.

Source: Responsible Editor of Interface News: Yang Bin_NF4368