On September 26, the CSR Report of the Trust Industry (2018-2019) (the Report for short below) prepared by China Trustee Association was released. Focusing on winning the three critical battles, the Report presents the achievements of China's trust industry fulfilling its social responsibilities for party building, legislation, economy, fiduciary issues, people's livelihood, environment, public welfare, humanism and responsibility management from 2018 to 2019. The Green Legal Global Alliance Research Institute sorted out the contents and highlights of the Report and paid close attention to accomplishments of China's trust industry in deepening transformation and development. 

Optimize business structure. 

According to the Report, by the end of 2018, the trust assets managed by the whole industry amounted to RMB22.7 trillion, down 13.52% year on year. 

Among them, the collective fund trust, the single fund trust and the property trust under management accounted for 40.12%, 43.33% and 16.55% respectively. 

The financing trust totaled RMB4.35 trillion, representing 19.15%; the investment trust amounted to RMB5.11 trillion, accounting for 22.49%; the transaction management trust totaled RMB13.25 trillion, representing 58.36%. 

Insiders said that compared with the scale, what the trust industry concerns is how to optimize the business structure. Since the new regulations on asset management, trust companies have taken the initiative to relieve the pressure on the scale, especially channel business. 

China Trustee Association pointed out that the trust industry will implement the spirit and work requirements of the 19th National Congress of the CPC, make endless efforts to guard against systemic financial risks and give the top priority to preventing and diffusing financial risks among the three critical battles. 

In spite of the pressure drop in the scale of trust assets in 2018, the tax paid by trust companies increased significantly. According to the Report, trust companies paid a total of RMB30.94 billion of tax in the whole year, an increase of 23.98% over 2017. 

In 2018, the trust industry achieved an operating revenue of RMB114.063 billion, of which the trust business income was 78.176 billion, total profit was 73.18 billion and per capita profit was 2,750,200. 

According to China Trustee Association, the impetus and core competitiveness of the trust industry's high-quality development rests with talents. The trust industry has always adhered to the principle of being people-oriented, safeguarded the legitimate rights and interests of employees, unblocked the career path of employees, optimized the living and development environment of employees in an all-round way and maximally improved employee enthusiasm. 

At the end of 2018, the whole industry had a total of 20,205 employees, including 55.09% men and 44.91% women, presenting a generally balanced gender structure. Most trust practitioners were of a younger age. Specifically, 78.93% employees were under 40, 0.36% up over 2018. 53.9% employees held a master's degree and above, about 4% higher than that in 2017. Therefore, the quality of the talent team was remarkably improved. 

Boost the real economy. 

As trust practitioners are entrusted by clients for wealth management, the trust industry should faithfully perform its fiduciary responsibility, improve the management system, perfect the wealth management level and help investors preserve or add value through constant innovation and diversified exploration. 

According to the Report, in 2018, the industry distributed trust income of RMB747.53 billion to investors. At the same time, backed by the unique professional advantages, the trust industry actively engaged in the practice of people's livelihood and social undertakings such as medical care, pension, education and indemnificatory housing, and made a positive contribution to improving people's happiness index. 

At the end of 2018, as the trust industry directly invested RMB13.72 trillion in the real economy, representing 72.42% of the total trust fund and basically covering all sectors of the real economy, it made its due share to supporting major national strategies including the "Belt and Road" Initiative, "Coordinated Development of Beijing, Tianjin and Hebei", the "Yangtze River Economic Belt" and "Guangdong-Hong Kong-Macao Greater Bay Area", and the development of emerging industries, agriculture, the development of agriculture, rural areas and farmers and the development of medium, small and micro enterprises. Besides, the industry played an active role in stabilizing growth, adjusting structure, promoting transformation and coping with corporates' difficulties in financing and costly financing. 

Liu Xiaojun, deputy general manager of CITIC Trust Co., Ltd. and chairman of Juxin Taifu, once told the reporter of the International Financial News that trust companies represent one of the financial institutions closest to the industry and can make a difference in a specific business model. "Trust companies need to further develop their comparative advantages with other financial institutions at the asset end, and develop their own characteristics, or more comprehensive industrial capabilities." 

Strengthen social responsibility. 

In the Report, China Trustee Association also summarized actions of trust companies in supporting green development, public welfare and charity development and helping poverty alleviation in 2018. 

By the end of 2018, the whole industry had 413 green trust programs, amounting to RMB132.623 billion. According to the statistics of green trust programs with estimated environmental benefits, the green trust prgrams saved a total of 759,900 tons of standard coal and reduced emissions of 1,805,200 tons of carbon dioxide equivalent. 

The development of green trust presents the characteristics of overall strategic planning, diversified use of financial instruments, diversified green investment, standardized business practice and standardized process system. 

In addition, in 2018, 87 charitable trusts were put on record and the entrusted funds and properties amounted to 1.128 billion, of which 71 were entrusted to trust companies and 10 to trust companies and charity organizations together. 

In addition to acting as the professional trustee of charitable trust, trust companies have also made active efforts to get social funds from all parties to support the development of public charity, effectively promote the development of charity. Besides, trust companies have also fully mobilized the strength of employees, shareholders and affiliated enterprises and supported the development of public charity at multiple levels and dimensions by means of funding the establishment of charitable trusts, charitable donations, and organizing voluntary activities, etc. 

To help poverty alleviation, a total of 63 charitable trusts were established, amounting to RMB68.51 million. 

The latest data at the end of Q2 shows that the assets of the trust industry outnumbered 22 trillion. 

Data shows that by the end of Q2 2019, the fiduciary assets of 68 trust companies in China amounted to RMB22.53 trillion, down 0.02% compared with that at the end of Q1 2019 and decreasing in a further slower speed. The year-on-year growth rate slowed to -7.15% compared with 4.88% at the end of Q2 of 2018. 

Among them, the financing trust totaled RMB4.92 trillion, an increase of about RMB300.4 billion compared with that at the end of Q1 2019, representing 21.83% from 20.49%. The investment trust amounted to RMB5.20 trillion, up 2.9 billion compared with that at the end of Q1 2019, accounting for 23.05% from 23.04%. The transaction management trust totaled RMB12.42 trillion, a decrease of 308.9 billion compared with that at the end of Q1 2019, representing 55.12%, down 1.36% compared with that at the end of Q1 2019. 

In terms of the trust fund sources, as of the end of Q2 2019, the single fund trust accounted for 40.97%, 1.33% down from that at the end of Q1 2019. The collective fund trust represented 43.57%, 1.47% up from that at the end of Q1 2019. The property trust under management took up 15.46%, 0.13% down from that at the end of Q1 2019. 

Source | International Financial News, Morning News