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What does the leverage ratio of trust companies mean?
Not only trust companies have leverage, but also futures companies and securities companies.

Lever, as the name suggests. Using the lever principle. A fulcrum can move the earth. Get higher returns with less money.

General trust companies will involve structured products.

For example. The priority fund of a product is 654.38+0 billion, and the inferior level is 50 million. Add up to1.500 million. If this10.5 billion investment. The loss is 50 million in the back and 654.38+0 billion in the front priority fund. Generally, only fixed interest is required. The inferior 50 million, although it is the first loss, but after earning, a large share. This 50 million can be said to double the leverage.