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How does the government deal with Sichuan Trust?
The Risk Disposal Progress Report issued by Sichuan Trust shows that since the second half of 2022, Sichuan Trust has accelerated the risk disposal work under the guidance of the working group. The relevant information is hereby notified as follows:

I. Collection and disposal of risky assets

Sichuan trust risk projects are distributed all over the country, and it is difficult to collect and dispose of them in a coordinated way across provinces. At the same time, the economic downturn and the impact of the epidemic have brought great challenges to the disposal of risky assets. Local governments and regulatory authorities deploy capable forces to promote the collection and disposal of assets through comprehensive use of market, administrative and judicial means, fill the risk gap to the maximum extent and reduce the cost of restructuring. At present, we are making every effort to promote the risk disposal process of key projects such as Hongda Department, National Collateral Department, Chengdu International Mall, Jin Qiao 'an Hydropower Station and Baihetan Cement Plant, laying a solid foundation for the success of restructuring.

Second, rectification and promotion work

Market-oriented reorganization is the first choice to protect the legitimate rights and interests of Sichuan trust customers to the greatest extent, and it is also the most difficult, complicated and time-consuming risk disposal path. Local governments organize intermediaries to calculate the restructuring costs in detail, study and form an overall restructuring plan, which is being further revised and improved, and fully promote the formation of the final risk disposal plan as soon as possible. The CBRC actively supports the restructuring work, explicitly gives policy support to eligible restructuring parties to participate in the restructuring of Sichuan Trust, guides the Credit Insurance Fund to actively connect with Sichuan, and studies and introduces relevant supporting measures to support the construction of Chengdu-Chongqing Twin Cities Economic Circle. At present, we are strengthening communication and consultation with relevant restructuring parties, refining the supporting preferential policies of the territories, making every effort to create favorable conditions for their restructuring of Sichuan Trust, and further pooling risk mitigation resources through various channels to strive to protect the legitimate rights and interests of customers to the maximum extent.

Third, control work.

The regulatory authorities and local governments continue to strengthen joint control over Sichuan Trust, maintain stable operation and management, and prevent the risk exposure from expanding. Guide Sichuan Trust to complete the second round of optimization of middle and back office personnel and reduce daily operating costs. Guide Sichuan Trust and Entrusted Service Group to complete the renewal of the entrusted service agreement, and ensure the continuous and effective operation of the "double signing and double control" mechanism. Actively coordinate the court and the public security department, strive for judicial support for the disposal of assets involved in Sichuan Trust, strive to improve the collection efficiency and safeguard the creditor's rights to the maximum extent.

legal ground

Article 2 of the Trust Law of People's Republic of China (PRC) * * * The term "trust" as mentioned in this law refers to the act that the trustor entrusts his property rights to the trustee based on his trust in the trustee, and the trustee manages or disposes in his own name for the benefit of the beneficiary or for a specific purpose according to the wishes of the trustor.