1. Trust companies are also financial institutions, but unlike banks, trust companies cannot absorb deposits. Trust companies can raise funds by setting up some trust plans, and then invest the raised funds in some industrial and agricultural construction projects (such as highway construction projects and real estate construction projects). Investors can sign a trust plan contract with the trust company, hand over the funds to the trust company to invest in a trust plan project, how much interest the trust company promises to give and how long it will take to return the principal. At that time, the trust company will directly transfer the interest and the returned principal to the investor's bank account.

II. Article 8 of the Administrative Measures for Trust and Investment Companies To establish a trust company, the following conditions shall be met:

(1) There are articles of association that conform to the Company Law of the People's Republic of China and the provisions of the China Banking Regulatory Commission;

(2) Having shareholders who have the qualification for shares as stipulated by China Banking Regulatory Commission;

(3) Having the minimum registered capital as stipulated in these Measures;

(4) Having directors, senior managers and trust practitioners who meet the requirements of the China Banking Regulatory Commission;

(5) It has a sound organizational structure, operating rules for trust business and risk control system;

(6) Having a business place, safety precautions and other business-related facilities that meet the requirements;

(7) Other conditions stipulated by China Banking Regulatory Commission.

Extended information

In China, trust companies refer to financial institutions established in accordance with the Company Law of the People's Republic of China and the Measures for the Administration of Trust and Investment Companies, which are mainly engaged in trust business. Trust company is a multilateral credit behavior based on trust entrustment, in the form of management of monetary funds and physical property, which combines financing and integration.

there are three parties involved in trust business: the principal, the trustee and the beneficiary. The person who transferred the property right, that is, the owner of the original property is the principal; The person who accepts the entrustment to manage and operate the property on his behalf is the trustee; Those who enjoy the benefits of property are the beneficiaries. There are many types of trusts, including personal trust, legal person trust, arbitrary trust, special trust, public trust, private trust, self-interest trust, other-interest trust, capital trust, movable property trust, real estate trust, business trust, non-business trust, civil trust and commercial trust.

Reference Baidu Encyclopedia Trust Company