I have just entered the trust industry. For someone who doesn’t understand trust, how can I explain it in a simple, clear and professional way? Thank you for your help. Gong Xi Fa Cai.

Trust was first produced in England and introduced to my country in the early 20th century. From a historical perspective, the functions of the trust system have experienced an interesting evolution. When trusts first appeared in medieval England, they were mainly used as a passive property transfer design to circumvent various restrictions and burdens imposed on property transfers by feudal laws at that time. With the collapse of the feudal system and the establishment of the capitalist market economy and legal principles, trusts have gradually become a way of professional property management. At the same time, trusts still play a large role in property transfer.

Trusts are usually used in two situations: one is when the property owner hopes that a specific property will increase in value, thereby bringing greater economic benefits to himself, but due to lack of time, energy or lack of Financial management ability, so as to hand over the property to the trust and use the management activities of the trustee to achieve one's own wishes. Another situation is that the property owner wants to transfer part of the property to a third party, such as his children or relatives and friends, but considering certain factors, such as the third party is underage, lacks financial management experience, etc., he does not want to transfer it immediately. Directly transfer property to a third party. At this time, the property owner can hand over the property to a trust, and through the trust management of the trustee, the third party can enjoy the same or even more generous benefits as the direct transfer. For example, the trust property is entrusted Effective management of people greatly adds value. Trust is an emerging financial management tool, so what kind of trust business are currently being launched by trust companies?

With the promulgation of the "Trust Law" in 2001, the implementation of the "Measures for the Administration of Trust Investment Companies" and the "Interim Measures for the Management of Funds of Trust Investment Companies" in 2002, trust companies have established legal rules for conducting trust business. Guarantees and specific implementation rules have been issued. Against this background, the trust business has developed unprecedentedly. According to incomplete statistics, as of the end of August 2003, more than 40 trust investment companies across the country had been re-registered. In just one year, they had launched more than 120 trust products at a rate of nearly ten per month, covering It covers multiple fields such as industrial market, currency market and capital market. Below I will give a brief introduction to the trust business varieties currently launched by trust companies, hoping that it will enable investors to have a more rational understanding of this new type of investment products and provide one more choice of investment channels.

Let’s start with the most basic introduction. First, let’s introduce to us what types of trust products are currently launched by trust companies?

Since July 18 last year, a total of 38 trust companies have launched more than 120 trust products, raising a total fund size of about 15 billion yuan. Even during the SARS epidemic in the second quarter of this year "The epidemic has not had much impact on the issuance of trust products by trust companies, and the trust industry has shown a momentum of accelerated development. The types of trusts that have been launched are divided according to the way of using funds, including 70 loan types, 51 investment types (including 24 securities types, 26 industrial types, and 1 foreign exchange type), 4 for purchasing franchise charging rights, and 2 leasing types. , the other 2. The above products are divided according to the investment direction of trust funds, including 50 real estate, 24 capital markets, 31 municipal construction, 4 agriculture (breeding), 4 energy (electricity, natural gas), 2 environmental protection, foreign exchange, cement, software, metal materials (Copper), biotechnology, chemical industry, textile, equipment (printing) leasing, 1 each, and 5 with unknown directions.

Every investment and financial management method has a certain period, so what is the trust period structure?

The "Measures for the Administration of Trust Investment Companies" stipulates: "A trust investment company accepts trust funds for which the management method is determined on its behalf, and its trust period shall not be less than one year." This provision can be understood as the management's hope that the trust The company plays the role of medium and long-term financing. Judging from the trust products launched by trust companies, the financing periods of trust plans are mainly 1 year, 2 years and 3 years. If you want to participate in trust investment, what is the starting point for a single contract investment?

;As the "Interim Measures for the Management of Fund Trusts of Trust Investment Companies" stipulates that trust companies collectively manage, use and dispose of trust funds, and shall not accept more than 200 fund trust contracts from entrusters, and the amount of each contract shall not be less than The limit is RMB 50,000. Products with a starting point of investment of 50,000 yuan for a single contract account for the majority, while the investment starting points of the remaining products range from 100,000 to 500,000 yuan.

Since the number of contracts for each trust product is capped at 200, some projects that require large amounts of capital have to raise the threshold for investment in a single contract. Shanghai SDIC’s “Haigang New City Trust Plan” has a minimum contract amount of 500,000 for individuals and 5 million for institutions; Chongqing SDIC’s “Jinglong International Apartment Project Fund Trust Plan” and Zhongtai Trust’s “Shanghai Bund Sightseeing Tunnel Fund Trust” The minimum amount of a single contract under the "Plan" is 400,000.

Now that our investors are becoming more and more rational, financial management methods with low risks and high returns will attract more and more people's attention. So how does the expected rate of return of trust products come from? Sure? How to attract investors? :

On the whole, the expected return rate of trust products is generally higher than that of other investment products in the same period. The expected rate of return is closely related to the direction of use of trust funds and the style of the trust company. Most of the trust funds with higher than average expected return levels are used in real estate projects (except for CITIC Trust's "Kangju Engineering Collective Fund Trust Plan" which is lower than the average expected return rate, the expected return rates of other real estate trust plans are all higher than the average level). Chongqing SDIC, Jinxin Trust, Yixin International, Suzhou Trust, Foreign Trade Trust, Xinjiang SDIC and all products of our company are higher than the average expected yield; at the same time, the expected yield of infrastructure construction trust plans is mostly lower than the average level.

Risks were also mentioned just now. How to control risks to ensure returns has become a topic that has to be discussed. Specifically, how to control risks

H trust products are important in ensuring returns. and adopt a more market-oriented approach to risk control. Except for some individual products such as Centaline Trust's "Jiaozuo Urban Infrastructure Construction Project Loan Fund Trust Plan" which are financially guaranteed, most products adopt commercial risk control methods such as third-party guarantees, bank guarantees, and insurance company performance guarantee insurance. China Coal Trust’s “Beijing Chegongzhuang Renovation Community Loan Project Collective Fund Trust Plan”, Zhongtai Trust’s “Shanghai Bund Sightseeing Tunnel Fund Trust Plan”, CITIC Trust’s “Kangju Project Collective Fund Trust Plan”, etc. are listed below. Three parties provide guarantees; Shanghai SDIC Ocean's "Haigang New City Trust Plan" uses China Construction Bank as a bank guarantee; Ping An Trust's "United Auto Loan Collective Fund Trust" uses performance guarantee insurance from insurance companies to protect income and control risks.

Trust companies have always used the slogan of "experts to manage finances on behalf of others", so how do experts charge?

Most products adopt a performance-linked charging model. For example, the collective fund trust plan of China Coal Trust Beijing Chegongzhuang Renovation Community Loan Project stipulates: “(1) If the trust property of the current year If the distributable rate of return does not exceed 4.6%, no trust remuneration will be charged for the current year; (2) If the distributable rate of return of the trust property for the current year exceeds 4.6% but does not exceed 5.7%, the trust remuneration collected for the current year will be: trust funds* (can be Distribution rate of return -4.6%); (3) If the distributable rate of return of the trust property for the year exceeds 5.7%, the trust remuneration collected for the year is: trust funds * [1.1% + (distributable rate of return - 5.7%) * 0.5 ]. This charging model is in sharp contrast to the fixed management fees currently adopted by the fund industry, and is also a major selling point of current trust products.

The above is an overview of the trust business launched by trust companies. In order to facilitate investors to better understand, I will use corresponding typical cases to cover the main fund investment directions according to the different ways of using trust funds, and further introduce the trust varieties currently launched by trust companies.

Trust loan

Trust loan means that the client entrusts his legally owned funds to the trust investment company based on his trust in the trust investment company. The trust investment company will, in its own name, according to the wishes of the client, Trust loans are currently a mainstream business launched by trust companies to provide financing to designated borrowers in the form of loans. As of the first half of 2003, the total amount of funds used was approximately 9.9 billion yuan, accounting for 10% of the total funds. About 70%; trust funds are mainly invested in real estate and infrastructure; the term is mostly 1-3 years; subject to restrictions on central bank loan interest rates, the yield fluctuates between 3% and 5%; mainly controlled by third-party guarantees or pledges Risk protection benefits.

Can you give me an example?

Take the Qingdao Real Estate Development Loan Trust Plan launched by our company as an example: In recent years, due to the continuous improvement of residents’ income levels and the reform of the welfare housing allocation system, the real estate industry has continued to heat up, and the industry’s profit margins have It is very lucrative, but as a capital-intensive industry, it is difficult for ordinary investors to share it, and real estate developers have difficulty obtaining loans from commercial banks due to various restrictions imposed by central bank policies, and face a large funding gap. Qingdao is located in the southeast of the Shandong Peninsula, surrounded by water on three sides and backed by the famous Taoist mountain Laoshan. It is a well-known coastal tourism open city at home and abroad. As the only branch venue of the 2008 Olympic Games, it provides huge imagination space for the local real estate industry. Lu Xin Weiyang Garden is located in Qingdao Shilaoren Tourist Resort, adjacent to Fushan Forest Park to the north and Sculpture Park to the south. The land area is 111,422 square meters, the total planned construction area is 76,660 square meters, the floor area ratio is 0.688, and the greening rate is 41.5%. It will be developed and constructed in two phases. The planned construction area of ??the first phase is 59,800 square meters above ground, all of which are apartments on the 5th to 7th floors; the underground area is 11,000 square meters, which is a semi-underground parking lot. The first phase of the project is planned to be completed, accepted and put into use before the end of 2004. The planned construction area of ??the second phase is 16,660 square meters, which is a top-quality villa. The total sales revenue of the two phases is expected to be 795.02 million yuan. It was in this general environment that our company provided a trust loan to the Luxin Weiyang Garden project developed by Shandong Luxin Real Estate Co., Ltd.

The term and scale of the funds,

Utilization of loan funds

Sources and distribution of trust income, investors’ expected annual yield and trust remuneration