At present, there are three main modes for funds to enter the stock market through trust: one is sunshine private placement mode, the other is single account structured trust mode, and the third is umbrella trust.
Advantages of Umbrella Trust Compared with margin financing and securities lending business, umbrella trust has many advantages.
First, the establishment process of umbrella trust is very convenient. Since each sub-trust under the umbrella trust does not need to open a separate account, it usually takes only one or two days for investors to actually join the umbrella trust. Because the margin financing and securities lending business is a single account model, it often takes about seven days to open an account.
Second, the scope of investment target of umbrella trust greatly exceeds the margin financing and securities lending business. In addition to the main board, small and medium-sized board and GEM stocks, umbrella trusts can participate in the ST sector that cannot be touched by the two financing accounts, and can also participate in the trading of investment products such as closed-end funds and bonds.
Third, the high leverage ratio of umbrella trust far exceeds margin financing and securities lending. Unlike the leverage ratio of margin financing and securities lending is 1: 1, the leverage ratio of umbrella trust in the market is 1:2 or 1:3. At the same time, the priority funds of umbrella trust are bank financing funds, and the inferior ones are generally served by ordinary investors. The cost of capital allocation is between 8. 1%-8.2%, which is lower than the average level of margin financing and securities lending of 8.6%. In other words, through umbrella trust, inferior investors can often trade in the secondary market with three times the funds of low-cost banks.
Umbrella trust shows that Lao Wang saw the stock market making so much money and decided not to make a sentimental mobile phone. First, he made a lot of money in stock trading, and then he could talk about his feelings without worrying about making money. But Lao Wang only has10 million, and doubling it is 20 million. He will spend the rest of his life talking about his feelings about golf courses, yachts and clubs, which is not enough.
So, looking for a trust?
But this time, somehow, the trust felt that I was short of money. At this time, Boss Zhao of the company next door, Boss Zhang of the shop downstairs and Boss Li of the pizza shop across the street all feel that business is not good now, so let's see if the bull market can make some money.
The trust company put us in, saying that four people each contributed100000, that is, * * * 40 million, to make a stock investment trust plan. The four of us use the same securities account to trade, but we each decide how to speculate, and the trust company will be responsible for the profits and losses. So this account actually has four sub-accounts, namely Lao Wang, Boss Zhao of the company next door, Boss Zhang of the shop downstairs and Boss Li of the pizza shop across the street.
Why not use your own account to speculate?
Because each sub-account can be refinanced. For example, a sub-account like Lao Wang will be divided into two parts: one is the priority investor, that is, the person who pooled the money to buy shares for me, and the other is the inferior investor, that is, Lao Wang himself. Priority investors are guaranteed capital and interest under the setting of liquidation line, but the expected income is also fixed, that is, interest money.
The funds of inferior investors are not guaranteed, and the interests of priority investors have to be changed, and the income depends on how much you can earn in the stock market after deducting these interests and other expenses. To put it bluntly, it is to borrow money to stocks.
The difference between umbrella trust and capital allocation Umbrella trust and stock capital allocation are two mainstream financing channels in the stock futures industry at present, but they are quite different and suitable for different investors.
1. Umbrella trust is generally suitable for institutions or large long-term investors, with relatively low cost and low requirements for risk control. Fund allocation is mainly suitable for small and medium-sized or short-term investors, and the cost is relatively high.
2. The leverage ratio of umbrella trust is generally less than three times, and the scale has certain requirements. The initial funds are basically above 6.5438+0 million. The initial amount of funds in the capital allocation channel is flexible, and leveraged customers can choose freely, which can generally be one to ten times.
3. Umbrella trust has strict requirements on the investment period, generally more than half a year, and the allocation of funds can be relatively flexible, from one month to one year, and customers can decide for themselves.
4. The transaction cost of the umbrella trust is fixed, which is basically around 1000, which is about twice that of the funded stock account.
5. Umbrella trust audit process is troublesome, slow in efficiency and fast in fund disbursement. Generally, accounts can be arranged on the same day.
Reasons for Banning Umbrella Trust The Securities Industry Association held a briefing on margin financing and securities lending business, demanding that off-site allotment and umbrella trust should not be carried out in any form. In the same year, the regulatory authorities issued the "Opinions on Cleaning up and Rectifying Illegal Securities Business Activities", requiring brokers to thoroughly clean up illegal fund-raising accounts.
Umbrella trust officially withdrew from the securities market.
In the market, the ratio of priority to inferior amount of umbrella trust is mainly divided into 1: 1, 1.5: 1, 2: 1, 2.5: 1 and 3: 1.
The participation period of trust products generally does not exceed 3 years, and the investment threshold is usually 3 million yuan. The rapid development of umbrella trust in a short period of time is inseparable from its efficient establishment speed, multiple securities sub-accounts, flexible investment scope and high leverage allocation.
Because all the sub-trusts in the umbrella trust use a securities account, it can avoid the position restriction on a single stock.
The CBRC stipulates that a single stock held by a structured trust cannot exceed 20% of the net asset value of the trust, but for an umbrella trust, as long as the whole large account does not exceed the limit. The leverage ratio of umbrella trust can reach as high as 1: 3, while the leverage ratio of margin financing and securities lending is mostly 1: 1.
In this business, the capital allocation cost of the inferior investment end of umbrella trust is about 8%, which is lower than the industry standard of margin financing and securities lending of 8.6%.
This means that through the umbrella trust, the inferior level can use cheaper bank funds to invest in A shares.
Therefore, the CSRC prohibits umbrella trusts.