Since the implementation of the new asset management regulations, trust companies have been in the process of going through channels. Since this year, the CBRC has repeatedly asked trust companies to reduce channel and financing trust business. As the channel and financing business are the main sources of income of trust companies, it is difficult to avoid the short-term pain brought by pressure drop to trust companies. An industry analyst said.
Reduce financing and channel business
It is worth noting that by the end of the third quarter, the proportion of single fund trust and transaction management trust has decreased for 11 consecutive quarters since the first quarter of 2018; the business scale of investment trust increased by 425.706 billion compared with the end of the second quarter, while the financing trust and transaction management trust decreased by 496.643 billion and 347.303 billion respectively. The main reason is to increase the compression of financing and channel business and expand investment trust business.
Real estate has always been an important field of trust funds. By the end of the third quarter of 2020, the total amount of trust funds invested in the real estate sector was 2.38 trillion yuan, a decrease of 326.201 billion yuan or 12.06% compared with the end of the previous year, and a decrease of 123.442 billion yuan compared with the end of the second quarter of 2020, with a month on month decrease of 4.94%.
Since the second quarter of 2019, in order to strictly implement the real estate without speculation and ensure stable house price, stable land price and stable expectation, the CBRC has continuously strengthened the compliance supervision of real estate trust, and the balance of trust funds invested in real estate has decreased for five consecutive quarters. At the end of the third quarter of 2020, the scale of fund trust invested in real estate decreased by 551.660 billion yuan, or 18.83%, compared with the peak at the end of the second quarter of 2019. In terms of proportion, at the end of the third quarter of 2020, the proportion of real estate trust was 13.8%, which was 1.27 and 1.58 percentage points lower than that at the end of 2019 and the end of the second quarter of 2019, respectively.
According to the data, by the end of the third quarter of 2020, the total amount of trust funds invested in the field of basic industries was 2.76 trillion yuan, a decrease of 61.609 billion yuan compared with the end of last year, a decrease of 2.18%, but the proportion was 16.01%, an increase of 0.29 percentage points compared with the end of the previous year, which is still the second major investment field of trust funds.
At present, the only investment field with positive growth in trust industry is securities market. By the end of the third quarter of 2020, the total amount of trust funds invested in the securities market was 2.21 trillion yuan, an increase of 253.814 billion yuan compared with the end of the previous year, with a growth rate of 12.95%; the scale accounted for 12.84%, which also increased by 1.92 percentage points compared with the end of last year.
In the first three quarters of this year, the stock market has gone out of the structural bull market, the issuance of public funds is booming, and the trend of resident asset allocation to standardized financial assets is obvious. As the market is improving, the demand growth is promoted, and the Interim Measures for fund trust management of trust companies (Draft for comments) has set a red line that the proportion of non-standard creditors rights financing does not exceed 50% for collective fund trust, and trust companies attach great importance to securities investment trust business. Trust Industry Association special researcher Deng Ting said.
Total profit in the third quarter decreased by 21.43% year on year
In recent years, Chinas trust industry has developed rapidly, which has played an important role in broadening investment and financing channels and serving the development of real economy. However, some trust companies deviate from the origin of trust, lack of compliance awareness and insufficient risk control. At present, the economic downward pressure is increasing, and the risk of trust industry is exposing rapidly, which brings severe challenges to the development of trust companies and the quality of assets.
According to the data, in the first three quarters of 2020, the operating income of the trust industry reached 84.16 billion yuan, an increase of 5.78% over the same period of last year, and the growth rate was 0.51 percentage points higher than that of the first half of the year. Among them, the trust business income was 61.578 billion yuan, with a year-on-year growth of 11.69%; the total realized profit was 48.589 billion yuan, a year-on-year decrease of 13.13%, an increase of 4.08 percentage points compared with the first half of the year.
In addition, in the third quarter of 2020, the operating income of the trust industry reached 29.109 billion yuan, a year-on-year increase of 6.75%, and the growth rate was 5.9 percentage points higher than that of the second quarter. From the perspective of income composition, the trust business income in the third quarter was 21.444 billion yuan, an increase of 10.67% over the same period of last year, accounting for 73.67% of the total revenue, an increase of 2.61 percentage points compared with the same period last year; investment income and interest income were 6.017 billion yuan and 1.288 billion yuan, respectively, with an increase of 0.82% and a decrease of 10.2%, accounting for 20.67% and 4.42% respectively. In the third quarter of 2020, the total profit of the trust industry was 14.487 billion yuan, down 21.43% year-on-year, which was significantly larger than - 10.2% and - 7.93% in the first and second quarters, which may be related to the increase in the provision of asset impairment losses by trust companies.
For the development of the trust industry in the future, Deng Ting said that trust companies should learn from the experience of trust development in overseas markets, actively innovate service trust products such as family trust, family trust, testamentary trust, Education Trust, pension trust, etc., and give full play to the institutional advantages of trust, and explore the business of enterprise annuity trust and personal pension trust, so as to help build endowment insurance The three pillars system is blocked.
In addition, the trust company must grasp the historical opportunity of the great development of capital market and the transfer of residents asset allocation, and promote the transformation to standard business. On the one hand, it provides comprehensive investment banking services around the investment and financing needs of listed companies to become bigger and stronger; on the other hand, it strengthens the construction of investment research capacity of the securities market, improves the ability of active investment management and allocation, and develops and designs more securities investment trust products that meet the needs of customers asset allocation, such as asset allocation TOF, TOT, mom products, bonds and fixed income + investment trust, and Yang Only private equity cooperation of securities investment trust products.
The controlling shareholders of some trust companies carry out interest transfer. At present, a few trust companies have been degraded into high-risk institutions, which brings greater reputation risk to the whole industry and affects the normal operation of trust companies. Trust companies should strengthen corporate governance, and strengthen the supervision of their executives and related transactions. A midstream trust company executives told reporters.