1. Legal policy risk

refers to the possibility of direct or indirect loss of trust assets due to changes in government laws and policies. Mainly reflected in the following aspects:

(1) In response to changes in government laws and policies, trust products such as trust assets transfer trust products and real estate trust products have been derived to avoid policy risks and government supervision.

(2) There are still some imperfections in China's policies and laws, which make it difficult to make it illegal. For example, if land and fiscal revenue are used as collateral, if the government carries out macro-control and tightens the land bank, then the land will become difficult to realize, which may result in invalid guarantee.

(3) There is no such provision in the government policy. For example, trust products invested in real estate projects are now required to pay deed tax. If there is a legal dispute, it is not easy to maintain the independence of the trust property.

2. Risk of trust property ownership

According to domestic laws, trust is mainly entrusted, while foreign trusts are based on the transfer of property rights. Trust based on property transfer has two consequences.

3. Risk of poor management

In the actual investment operation, there will be risks if the trust company makes operational mistakes or operates unfavorably.

some companies blindly pursue high returns, and the risk control measures are not done well, so the actual returns may be lower than the costs.

4. Moral hazard

Trust is based on trust, and the trust company should be loyal to the trustor and beneficiary, and can't use the trust property for personal gain. For example, covering up risks, withdrawing capital and other immoral and illegal behaviors.

5. Interest rate risk

The income of trust products may be affected by bank deposit interest rate, bank loan interest rate and money market.

6. Other risks

Such as war, political turmoil, financial crisis and other force majeure factors. It may cause losses to trust assets.