Trust company is a financial company with financial license under the supervision of China Banking Regulatory Commission directly under the State Council, belonging to investment bank.
What are the businesses of such companies?
Financing business and wealth management business are the two main businesses of trust companies at present.
The usual practice is to package the financing needs of an enterprise into a fixed-income wealth management product through risk management and transaction structure design, and sell it to a rich person, bank wealth management funds, or insurance funds.
A part of trust remuneration can be collected when financing, and a part of financial management fee can be collected when issuing.
Trust and investment companies are financial institutions that manage funds on behalf of others as trustees. It is called the three pillars of modern financial industry together with bank credit and insurance. The main business of China's trust and investment companies: operating funds and property entrustment, agency asset custody, financial leasing, economic consultation, securities issuance and investment.
According to the requirements of the State Council on further cleaning up and rectifying financial companies, the business scope of trust and investment companies in China is mainly limited to trust, investment and other agency business. If it is really necessary, a few can engage in leasing and securities business with the approval of the People's Bank of China, and issue special trust beneficiary bonds within one year for loans and investments of specific objects, but they are not allowed to handle bank deposit business. In 2007, when the CBRC formulated the new Administrative Measures for Trust Companies, it renamed the original "trust and investment companies" as "trust companies".
scope of business
(a) entrusted to operate the fund trust business, that is, the trustor entrusts the trust and investment company to manage, use and dispose of the legally owned funds according to the agreed conditions and purposes;
(2) Entrusting movable property, real estate and other property trust business, that is, the client entrusts his movable property, real estate and intellectual property to a trust and investment company for management, use and disposal according to the agreed conditions and purposes;
(three) entrusted to engage in investment fund business permitted by laws and administrative regulations, and engaged in investment fund business as the promoter of investment funds or fund management companies;
(four) to engage in intermediary business such as enterprise asset restructuring, mergers and acquisitions, project financing, corporate wealth management, and financial consulting;
(five) entrusted to underwrite government bonds, policy bank bonds, corporate bonds and other bonds approved by the relevant departments of the State Council;
(six) the management, use and disposal of the agency property;
(7) Custody business;
(eight) credit witness, credit investigation and economic consulting business;
(nine) to provide security for others with inherent property;
(10) Trusting to operate charitable trusts;
(eleven) other businesses approved by the people's Bank of China.
Traffic classification
(1) Taking the company's stocks and bonds as business objects, and obtaining income through securities trading, dividends, debt interest, etc.
Investment made by trust and investment companies with their own funds and institutional funds. At present, directly participating in enterprise investment as an investor is a major business of China Trust and Investment Company.
In the process of trust and investment, trust and investment companies directly participate in the distribution of operating results of investment enterprises and bear corresponding risks.
(2) directly participating in enterprise investment as an investor.
As the principal, investors directly participate in the investment business with the entrusted funds.
For entrusted investment, the trust company does not participate in the income distribution of the investment enterprise, only charges a handling fee, and does not assume economic responsibility for the investment income.