Use less capital to gain higher returns.

Generally trust companies will involve structured products.

Example.

A product has a priority fund of 100 million and an inferior product of 50 million.

But now the country has promulgated a policy to reduce the leverage of trust funds, from the original 1:2 capital allocation to only 1:1, so trusts with full capital allocation must reduce leverage within the specified time, and trusts holding stocks must sell

stocks and return the allocated funds.

This is fun.

There was no need to sell stocks originally, but now the policy has come.

The trust company had to liquidate the stocks, and someone had to take over the liquidation, but the volume was huge.

So it often leads to market fluctuations.

The price of the stock held fell.