However, it is worth emphasizing that the reliability here cannot be equated with the fact that the trust has not experienced risks and "guaranteed capital and interest". No wealth management product can promote guaranteed capital and interest or there is no risk at all.

The most important reason why trusts are safe is that trust companies are regular licensed financial institutions. There are only 68 trust companies operating normally in China (three others are suspended), and there will be no new increase at present. Compared with thousands of banks, hundreds of brokers and futures companies in China, trust license is the scarcest and most valuable of all financial licenses in China.

Supervision level

At present, the four pillars of the financial industry are banks, insurance, brokers and trusts. These four financial formats together constitute a country's financial system. China is no exception. According to statistics, the asset management scale of trust industry is second only to banks, but higher than brokers and insurance companies. In other words, the trust is a veritable regular army.

Trust is supervised by the Trust Department of China Banking and Insurance Regulatory Commission and the People's Bank of China. Because trust belongs to the financial system.

According to the regulations, the internal audit department of a trust company shall submit a copy of the above report to the central bank at least once every six months in addition to the internal audit report to the board of directors.