Minmetals Trust's thunderous blow has once again plunged China Merchants Bank, a "trillion-dollar bank" that has just emerged from the turmoil of executive changes, into controversy.
Minmetals Trust is in trouble again.
Recently, a large number of investors have reported that the Minmetals Trust Dingxing No. 1 to No. 15 products sold by China Merchants Bank with a total scale of more than 2.3 billion yuan cannot be redeemed after they expire.
The expiration dates of these 15 products are from March to May this year. Among them, Minmetals Trust-Dingxing Series 1 and 2 have expired on March 30, Issues 3-5 on April 30, and May 31
Issues 6-11, Issues 12-15 on June 18.
Multiple temporary information disclosure announcements of the Minmetals Trust-Dingxing Product Collective Fund Trust Plan show that the trust plan is used to transfer supplier claims receivable held by Shenzhen Wushunfang to the project company of Shimao Group, and the balance is paid by Shimao Group.
Affiliated company Shimao Construction provides debtors with services to fulfill their repayment obligations.
The National Business Daily quoted investor sources as saying that investors in the 1-5 products have received principal payments, with the payment amount being 20% ??of the principal.
Another investor said that he had received an application notice for an 18-month extension for this series of trust plans.
In Shimao Construction's "Reply Letter" regarding the project extension plan, the company applied to extend the expiration date of the trust plan by 18 months and repay no less than the principal within 30 working days (inclusive) of the original expiration date.
20% of the total trust principal of the trust plan; repayment shall not be less than 25.33% of the trust principal of the trust plan within 13 months to 15 months (inclusive) after the original maturity date; repayment within 16 months to 18 months after the original maturity date
(inclusive) to repay all remaining trust principal and other outstanding trust benefits of this trust plan.
I have stepped in many real estate companies before.
Data from Yiyi Trust Network shows that from January to September 2020, Minmetals Trust’s real estate trust issuance scale rose to the first place, reaching 75.4 billion yuan, accounting for 11% of the total real estate trust issuance.
At the same time, since 2019, Minmetals Trust has established at least 33 financing trusts to invest in the real estate industry in the form of trust loans.
Another 22 investment trusts invest in the real estate industry in the form of long-term equity investments.
It is worth noting that due to the boom in the real estate industry, Minmetals Trust has stepped on many violent real estate companies.
In 2020, Minmetals Trust established the Minmetals Trust-Xinze Investment Collective Fund Trust Plan for Qinying Real Estate, a project company under Evergrande, with the total amount of funds raised not exceeding 3.3 billion yuan.
The funds will be used for the development and construction of the Foshan Fengsha project and the return on initial shareholder investment.
Minmetals Trust obtained 51% of the equity of Qinying Real Estate before the loan, and Evergrande shareholders provided pledge guarantee with 49% of the equity of the project.
With Evergrande's thunderstorm, this project has also fallen into trouble.
In January this year, 49% of the equity of Qinying Real Estate held by Evergrande shareholders was transferred to Minmetals Trust. Minmetals Trust realized 100% of the equity of Qinying Real Estate and personally managed the project.
At the same time, Minmetals Trust also took over the Evergrande Guangshen International Cultural Tourism City project and achieved full shareholding.
Sunshine City also transferred its equity in the project due to the same funding problems.
In July 2020, Chongqing Muguang Real Estate, a subsidiary of Sunshine City, raised 1.23 billion yuan from Minmetals Trust, and another subsidiary, Dongguan Guangqi Real Estate, provided mortgage with its land.
On January 25 this year, Sunshine City transferred 100% equity of its wholly-owned subsidiary Shenzhen Sunshine City Industrial Development Co., Ltd. to Minmetals Trust for transfer guarantee.
At the same time, Dongguan Guangqi Real Estate provides a pledge of the final payment of the house purchase, while the rest remains unchanged.
In 2021, Minmetals Trust's total investment in the real estate industry was 75.904 billion yuan, accounting for 9.29% of the total trust funds.
This number is down compared to 2020.
Minmetals Trust's trust funds invested in real estate in 2020 totaled 105.499 billion yuan, accounting for 15.01%.
China Merchants Bank was implicated.
It is worth noting that China Merchants Bank was also reported by investors for suspected violations in the process of selling this series of products.
According to Times Weekly, some investors said that when China Merchants Bank’s app was launched, the Dingxing series of products were once described as funds.
Since Minmetals Tru's report against investors, on May 27, the China Banking Regulatory Commission sent a "Notice of Reporting on Banking and Insurance Illegal Acts" to investors.
In response to the problems reflected in China Merchants Bank's lax customs supervision and intentional concealment of trust product information, the China Banking Regulatory Commission required the investor to provide further supporting materials.
On June 7, the investor submitted relevant certification materials and a supplementary report on new problems with China Merchants Bank to the China Banking Regulatory Commission.
Once upon a time, real estate trusts were the main products sold by banks because of their high returns.
2021 is the first year of great wealth management for China Merchants Bank.
Tian Huiyu, the former president of the bank, once said that the dream of "bringing financial management into the homes of ordinary people" is gradually becoming a reality.
However, in the process of the radical development of China Merchants Bank's financial management, the real estate trusts sold as agents have been hit hard one after another.
Previously, including China Fortune Land Development and Evergrande Lei, China Merchants Bank had been operating steadily.
At the performance conference held in March this year, Vice President Zhu introduced that as of the end of 2021, the asset balance of China Merchants Bank’s real estate-related financial management business was approximately 100.8 billion yuan, accounting for less than 6% of the total financial scale, and the default rate was approximately 0.2%.