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What is a trust company? What is the company's related business?
In China, a trust company refers to a financial institution mainly engaged in trust business established according to the Company Law of People's Republic of China (PRC) and the Measures for the Administration of Trust and Investment Companies. A trust company is a kind of enterprise legal person who makes trust investment as a trustee for the purpose of obtaining trust remuneration. Its main functions are asset management and financing. The diversity and extensiveness of trust company's asset management model are the characteristics that distinguish it from banks, securities companies and other financial institutions. Trust business mainly includes two aspects: entrustment and agency. The former means that the property owner entrusts his property to others for the benefit of himself or his designee, and requests to properly manage and operate it for a certain purpose; The latter refers to some economic affairs that one party authorizes the other party to handle on its behalf.

In fact, there are many classification methods for trust products according to different classification standards. The classification method introduced by the wealth management dog here is mainly classified according to the investment of trust assets. In addition to investment classification, there are other different classification methods.

take for example

① According to the way of establishing trust relationship, it can be divided into: arbitrary trust and legal trust;

② According to the nature of the trustor or trustee, it can be divided into: corporate trust and personal trust;

③ According to different purposes of beneficiaries, it can be divided into: private trust and public trust;

④ According to whether the beneficiary is the trustor or not, it can be divided into: self-interest trust and other-interest trust;

⑤ According to the nature of trust matters, it can be divided into: commercial trust and civil trust;

⑥ According to the different purposes of trust, it can be divided into: guarantee trust and management trust, handling trust, managing and handling trust;

⑦ According to the region involved in trust, it can be divided into: domestic trust and international trust;

According to the different nature of trust, it can be divided into: fund trust, chattel trust, real estate trust, other property trust and so on.

Pet-name ruby can be divided into single trust and collective trust according to the number of clients.

According to the different investment of trust assets, it can be divided into: industrial and commercial enterprise trust, infrastructure trust, real estate trust, public trust, securities investment trust, bank-trust financial cooperation and family trust.

Industrial and commercial enterprise trust

As the name implies, trust companies are entrusted by investors to raise funds for enterprises engaged in product production and service provision, and provide liquidity, project construction funds and merger and acquisition funds. Earn profits for customers. Industrial and commercial enterprise trust can adopt various investment methods such as equity investment, equity investment, securities investment, portfolio investment and trust loan. Bottom line: the money from the industrial and commercial enterprise trust finally flows into the enterprise to help it grow and tide over the difficulties.

Infrastructure trust

Infrastructure trust refers to the business behavior that a trust company, as the trustee, accepts the trust funds of the client in the form of trust, and applies the trust funds to infrastructure projects such as transportation, communication, energy, municipal administration and environmental protection in its own name, and manages or disposes for the benefit of the beneficiary or for a specific purpose. Bottom line: the money from the infrastructure trust is finally invested in the infrastructure construction of the country (road construction, bridge construction and park construction), which is the credit endorsement of our party.

real estate investment trust

Real estate trust refers to the trust company's management, use and disposal of trust property in the capacity of the principal, in the form of trust, in its own name for the benefit or specific purpose of the beneficiary, and with real estate projects or their operating enterprises as the main cousins. Bottom line: the money from the real estate trust is finally invested in real estate enterprises to build, repair and sell houses.

Charitable trust

Charitable trust is also called charitable trust. Refers to the trust established for the purpose of public interest and benefiting the whole public or the public within a certain range. Charitable trusts are usually provided with certain property by the client and entrusted to the trustee for management as a trust. Use the trust property for public welfare purposes stipulated in the trust. (Bottom line: Money from charitable trusts is kept by trust companies and invested in ordinary people who need attention and care)

securities investment trust

Securities investment trust refers to the securities business behavior of investing the funds under the trust plan or separately managed trust products in legally publicly issued and legally stipulated trading places (in short: the funds of securities investment trust are ultimately invested in securities markets such as stocks, bonds and futures).

Bank-trust financial cooperation (now strictly restricted)

Bank-trust financial cooperation is to connect the funds raised by banks through issuing financial products with trust products. The specific way is that banks raise funds from investors by setting up financial management plans. Then deliver the wealth management funds to trust companies or invest in trust products. (Bottom line: all the money that banks sell wealth management products ends up buying trust products (this is what trust migrant workers often tell investors: it is better to buy trust than bank wealth management, because most of the money you buy bank wealth management comes from trust).

Family trust

Family trust is a kind of property management mode in which the trust structure is entrusted by individuals or families to manage and dispose of family property on their behalf, with the goal of realizing customer financial planning and inheritance. (Bottom line: transfer the property to the trust fund, which will keep it for you, and distribute the income or inherit the property according to the disposal method stipulated in the trust document drawn up by you and the trust company).