Core Viewpoint - The National Financial Supervision Administration has officially approved Huaxin Trust Co., Ltd. to enter bankruptcy proceedings, marking a significant development in the company's risk management efforts that have been ongoing for 5.5 years [1][3]. Group 1: Bankruptcy Proceedings - Huaxin Trust has been under risk disposal for 5.5 years, and the recent approval for bankruptcy signifies a new phase in this process [3]. - The approval for bankruptcy comes after a series of regulatory actions, including the suspension of its "fund pool" business in April 2020 and multiple product delays in September of the same year [4]. - Huaxin Trust is the second trust company to enter bankruptcy since the enactment of the Trust Law in 2001, following Xinhua Trust, which declared bankruptcy in May 2023 [6]. Group 2: Risk Disposal and Management - As of September 16, 2023, Huaxin Trust reported that the signing process for the transfer of trust beneficiary rights was nearing completion, with a signing rate of 95.5% among 3,004 individual investors [5]. - The company has been involved in significant governance issues, including the arrest of its chairman in January 2021 for alleged economic crimes, which exacerbated its credit and liquidity risks [5]. - The latest available financial data from Huaxin Trust, as of the end of 2019, indicated total assets of 12.376 billion yuan, managed trust assets of 61.58 billion yuan, and an annual revenue of 573 million yuan, reflecting a 50% year-on-year decline, with a net loss of 152 million yuan [5].

Core Viewpoint - The approval of Huaxin Trust's bankruptcy by the Dalian Regulatory Bureau of the National Financial Supervision Administration marks a significant development in the company's prolonged risk disposal process, which has lasted for over five and a half years [1][4]. Group 1: Company Background and Financial Status - Huaxin Trust, established in 1981, is the only trust company in Liaoning Province and the largest shareholder of Datong Securities [7]. - The company faced severe governance issues and financial difficulties, leading to intervention by the former CBIRC in February 2021. The chairman was arrested for economic crimes, and the company reported a net loss of 152 million yuan in 2019, with total assets of 12.376 billion yuan and managed trust assets of 61.58 billion yuan [7]. - The latest financial data available is from the 2019 annual report, showing a 50% year-on-year decline in revenue to 573 million yuan [7]. Group 2: Risk Disposal Process - The risk disposal process for Huaxin Trust began in April 2020 when the company was ordered to halt its "fund pool" business, leading to multiple product delays [5]. - On August 14, 2023, Huaxin Trust announced that Dalian Anding Enterprise Management Co., Ltd. would acquire eligible personal investors' trust beneficiary rights by September 25, 2025 [5]. - As of September 24, 2023, 3,004 personal investors had signed contracts with Dalian Anding, achieving a signing rate of 95.5%, indicating that the risk disposal process is nearing completion [6]. Group 3: Industry Context - Huaxin Trust is the second trust company to enter bankruptcy proceedings since the enactment of the Trust Law in 2001, following Xinhua Trust, which declared bankruptcy in May 2023 [8].