Self-operated business is relatively easy to understand, that is, trust companies invest their own funds to make profits. The scope and object of investment can basically cover all kinds of mainstream investment methods in the current market. If we look back along the short development history of trust companies, trust companies have had many wonderful performances as holding platforms before, and many of these activities are based on the self-operated business of trust companies. Different from general investment-oriented enterprises and funds, trust companies are constrained by net capital management, so they should be particularly cautious in investing in their own businesses to ensure that trust companies have enough room for manoeuvre in venture capital management. I'm afraid the total scale of self-operated business in the whole industry will not exceed 300 billion, which is far from the scale of trust business 10 trillion. Therefore, all people who care about trust companies care about trust business.
The structure of trust business is relatively more complex and diverse. In recent years, it has attracted a lot of attention and carried many misunderstandings. This can't criticize the status quo. After all, those eloquent experts on TV and newspapers are ignorant most of the time, and sometimes they even tell stories by imagination. Cut the crap and get to the point. To understand the trust business, we must first understand the concept of trust. Trust is an exotic product, which was originally used to solve the land inheritance problem of the church. The legal relationship of entrusted management has replaced the ownership and possession relationship. Personally, I think there are some differences between testamentary trust and modern trust system in ancient Egypt and Rome. With the passage of time, trust has gradually matured into a common tool to deal with the transfer of property and property rights in common law countries, that is, the owner of the property entrusts the property to a third party, and the third party is responsible for managing and disposing of the property in an agreed way (mainly for whose benefit). After the trust system was introduced into Japan, some changes took place under the framework of civil law system, and finally a unique trust banking system in Japan was formed, which was not developed here. As can be seen from the above, trust is essentially a legal relationship, dealing with a series of matters such as the ownership, management and disposal of property. The generalized trust relationship is ubiquitous in the current financial market. Public Offering of Fund is essentially a subdivision of trust, and the off-balance-sheet business of banks can actually be understood as a kind of trust. Now the booming brokerage asset management business is also a trust in essence, but the domestic financial industry is licensed separately, and the scope of the exhibition industry is limited by the regulatory authorities. Therefore, trust business can only be carried out by trust companies. Understanding the concept of trust is helpful to understand the trust business.
As the name implies, trust business is to handle trust business, and trust companies are the main body to carry out this business. Generally speaking, trust companies accept clients' entrustment and handle entrusted property according to trust contracts. The entrusted object is cash, which is a fund trust, and the entrusted object is property or property right, which is a property right trust. The objects of delegation can be varied. The purpose of management is for the benefit of customers. This is a self-serving trust, for the benefit of others. This is trust in other interests. The above are the main classification methods. Others, such as fund trusts with principal of one person, are called single fund trusts, and those with principal of multiple persons are called collective fund trust plans (this should be the most familiar concept for most people). Of course, there are also classification methods. The object of fund use in fund trust is to issue trust loans, and investment trust is used in various investment forms. The classification can be endless, and too many classifications are meaningless. Having said that, we can almost explain why trust has become the most flexible tool in the financial market at present. You see, there is basically nothing that can't be done, and it also embodies the spirit of "law can be done without prohibition" in trust law legislation, although this can only be the best ideal in practical business.
Next, let's talk about how the specific business of trust companies is carried out. In fact, the key point is how to play the fund trust. After all, this is the most mainstream mode of operation in the market, which has been played out in recent years and may soon be broken. Fund trust is the main business of most trust companies and the main source of income. Recently, the land transfer trust and family trust promoted by some industry bosses can only be said to be one of the future strategic directions, which can not form the main pillar business and income source of the industry for the time being. In essence, fund trust is a business in which trust companies accept the entrustment of investors and handle the entrusted funds for investors' interest management, so as to achieve the purpose of maintaining and increasing the value of funds. How to use the funds entrusted by the trust company is completely decided by the trust company, which is generally classified as self-operated business; If the trust company accepts the funds from the principal, it also agrees that the investment order is decided by the principal, which is generally classified as channel business; In these two types of business, the responsibilities of trust companies as trustees are completely different. Of course, ordinary investors don't need to know that much.
As for the government financing platform and real estate financing mentioned in the previous answer, they are only areas where the heads of fund trusts are relatively concentrated in the past two years and cannot be equated with trust business. At the time of 6000 points in the stock market, the mainstream of trust is Sunshine Private Equity, and the target of funds is secondary market stock investment. When the 20 12 bond market was booming, there were also some trust-based sunshine private placements aimed at the bond market. Interest rates in the money market have risen recently. I believe many trust companies have invested in the fund pool. These are just different ways to use funds.