Core Viewpoint - The article discusses the recent release of the "Asset Management Trust Management Measures (Draft for Comments)" which aims to enhance the regulatory framework for the trust industry in China, following previous regulations and reforms in the asset management sector [3][5]. Summary by Sections Background of the New Regulations - The current regulations have been in place for 18 years and require updates to align with industry practices. The new draft is a response to the evolving landscape of asset management, particularly after the introduction of the asset management new regulations in 2018 and the three-category regulations in 2023 [5][6]. Positioning of Asset Management Trusts - The draft positions asset management trusts as private asset management products based on trust law, emphasizing three main characteristics: serving the maximum legal interests of investors, being privately placed to qualified investors with a cap of 200 participants, and adhering to strict investor standards [6][7]. Industry Transition - The trust industry is transitioning from traditional non-standard financing to a more diversified model that balances asset service trusts and asset management trusts. In 2023, over 30,000 trust products were established, with a total scale of approximately 4.33 trillion yuan, where asset service trusts accounted for about 57% and asset management trusts for 43% [7]. Enhanced Management and Regulatory Requirements - The new regulations emphasize comprehensive management of trust products and introduce multiple red lines across key areas. For instance, the concentration of investors is restricted, with limits on the amount a single investor can contribute to a trust product [9][10]. Investor Concentration and Reporting - The draft specifies that a single investor's contribution cannot exceed 50% of the trust's total scale, while institutional investors and their affiliates are limited to 80%. Additionally, there are requirements for transparency regarding the actual investors and funding sources [10][11]. Performance Fees and Investment Limits - The regulations set a cap on performance fees, which cannot exceed 60% of the investment returns above the benchmark specified in the trust documents. Furthermore, investments in the same asset are limited to 25% of the trust's total scale, with certain exemptions [12]. Sales and Prohibited Activities - The draft outlines strict sales requirements, prohibiting channel and fund pool businesses. Trust companies must clearly disclose risks to investors and cannot guarantee returns or obscure actual risk conditions [13][14]. Rectification of Existing Trust Business - Trust companies are required to review and rectify existing asset management trust businesses in accordance with the new regulations, with progress monitored by the financial regulatory authority [15].

Core Insights - The report aims to enhance the awareness of social responsibility within the trust industry and promote harmonious development with the economy and society [1] Industry Overview - As of the end of 2024, there are 67 approved trust companies managing a total trust asset scale of 29.56 trillion yuan, marking a historical high [3][4] - The trust industry achieved operating income of 94.036 billion yuan and a total profit of 23.087 billion yuan in 2024, reflecting a significant decline in profit compared to the previous year [4] Business Structure and Trends - Under the new "three classifications" regulations, the trust industry is undergoing a transformation, leading to an optimization of business structure and a decline in traditional high-yield businesses [1][4] - The scale of capital trusts reached 22.25 trillion yuan by the end of 2024, a year-on-year increase of 28.02%, accounting for 75.27% of the total managed assets [3] - The allocation of capital trust funds has increasingly favored the securities market, which now represents over 46% of the total capital trust scale, with investments in this area growing by 55.61% year-on-year [3][4] Profitability Challenges - The trust industry's profit nearly halved, dropping by 45.52% from 2023, attributed to the impact of real estate risk project resolutions and the transition challenges posed by the new regulations [4][5] - The industry is experiencing a shift towards "light capital operation and heavy entrusted services," necessitating a focus on the development of transformation-related businesses and optimization of business structures [8] Regulatory Environment - The "three classifications" regulation, which categorizes trust business into asset service trusts, asset management trusts, and charitable trusts, is set to have a three-year transition period ending in June 2026 [7] - The new management measures for trust companies will take effect on January 1, 2026, requiring further adjustments in business scope, qualifications, governance, and risk management [7] Future Outlook - The trust industry is expected to continue its transformation, with a focus on enhancing service attributes and exploring niche opportunities for profit maximization [8] - Asset management trusts are anticipated to remain the primary source of profitability for trust companies in the foreseeable future, as the industry adapts to technological advancements and evolving market demands [8]

Group 1 - The trust industry is experiencing continuous growth in standardized trust products, with 1,491 products issued in July 2023, a month-on-month increase of 141 products, representing a growth rate of 10.44% [1] - The implementation of the "Three Classification New Regulations" in 2023 is seen as a significant milestone for the development of standardized trusts, especially as non-standard trusts face transformation pressures [1][2] - Standardized trust investments in bonds, stocks, and other standardized assets are beneficial for guiding social funds towards capital markets and the real economy, thereby enhancing resource allocation efficiency [1] Group 2 - Among the 57 trust companies that have disclosed their 2024 annual reports, 79% actively mentioned standardized trusts, indicating their strategic importance within the industry [1] - Zhongcheng Trust reported a standardized trust scale of 866.58 billion yuan as of June 30, 2025, a growth of 61.79% since the beginning of the year, while Zhonggu Trust's standardized asset management business reached 126 billion yuan, up 19% [1] - Jin Gu Trust and Kunlun Trust have emphasized the importance of standardized trusts in their recent meetings, focusing on enhancing wealth marketing and management capabilities [2] Group 3 - The non-standard trust business has seen a decline in its proportion of total trust assets, yet it remains a component of some trust companies' business systems [2] - The "Three Classification New Regulations" clarify the boundaries of trust business, prohibiting trust companies from conducting asset management trust business in the form of private equity funds and other non-compliant activities [2] - The industry is facing significant transformation challenges, with early adopters of transformation gaining a competitive advantage [3] Group 4 - The future of standardized trusts depends on trust companies' ability to enhance their professional capabilities and find sustainable profit growth points under strict regulatory conditions [3] - The trust industry is expected to transition from being "quasi-credit intermediaries" to "true asset management institutions," reshaping the competitive landscape [3] - Successful transformation will allow trust companies to occupy a dominant position in the asset management market, serving as a core hub connecting the real economy and household wealth [3]

Core Insights - The trust industry in China has seen significant growth in asset scale, reaching 29.56 trillion yuan by the end of 2024, a 23.58% increase from the end of 2023 [1][2] - Despite the growth in asset scale, the industry's profit has sharply declined by 45.52% to 230.87 billion yuan, indicating a pressing need for new revenue and profit drivers [5][6] Asset Scale and Revenue - The trust asset scale increased by 5.64 trillion yuan from the end of 2023, marking a substantial annual growth [1] - Operating income for the trust industry reached 94.036 billion yuan in 2024, up 8.89% from 86.361 billion yuan in 2023 [1][5] - The average trust business income for 57 companies was 7.81 million yuan, a decrease of 6.99% from the previous year [5] Business Transformation - The growth in asset scale is attributed to the implementation of the "Three Classification New Regulations," which has led to a shift from traditional non-standard financing to diversified asset service trusts and asset management trusts [2][3] - Asset service trusts accounted for 70% of new products and 50% of the scale of newly established products in 2024, despite their low fee structure impacting overall profitability [1][4] Specific Trust Categories - By the end of 2024, family trust balances reached 643.58 billion yuan, while insurance trust balances were 270.40 billion yuan, contributing to a total of 1.0289 trillion yuan in personal wealth trusts [2] - The administrative management service trust business had a scale of 1.8177 trillion yuan, indicating a deepening of service scenarios and the social value of trusts [3] - Asset management trusts totaled 11.39 trillion yuan, with fixed income trusts primarily invested in bond assets amounting to 9.15 trillion yuan [3] Profitability Challenges - The overall profitability of the trust industry has weakened, with a significant drop in profits due to the low fee structure of asset service trusts [5][6] - The average fair value loss for 57 companies was 94 million yuan, indicating increased pressure on revenue and profit margins [6] - The industry is urged to balance traditional and new business growth to enhance profit performance and adapt to regulatory changes [7]

Core Insights - The Chinese trust industry has shown significant growth, with the total trust assets reaching 29.56 trillion yuan by the end of 2024, marking a 23.58% increase from the end of 2023 [1][2][3] Industry Overview - By the end of 2024, the trust asset scale is close to 30 trillion yuan, reflecting a substantial transformation following the implementation of the "Three Classification New Regulations" [1][3] - The trust industry experienced a historical peak in asset scale, surpassing the previous high of 26.25 trillion yuan in 2017, after a period of decline from 2018 to 2020 [2][3] Business Structure Optimization - In 2024, the trust industry established 67,400 new trust products, with a total scale of 8.32 trillion yuan, indicating a shift towards asset service trusts, which accounted for 70.17% of new products [4][5] - The growth in trust assets is attributed to the optimization of business structure, with a focus on asset service trusts and wealth management services [4][5] Financial Performance - The trust industry's operating income for 2024 was 94.036 billion yuan, an increase of 8.89% from 2023, while profits fell to 23.087 billion yuan, a decrease of 45.52% [5][6] - The shift towards asset service trusts, which typically have lower fees, has impacted overall profit margins, necessitating a focus on improving business efficiency and profitability [5][6] Future Developments - The "Three Classification New Regulations" aim to guide the trust industry back to its core functions, with a clear path for future development and the introduction of supporting regulations [6][7] - The trust industry is expected to see new opportunities with the implementation of property trust registration trials in major cities, enhancing regulatory compliance and operational efficiency [8]