Core Viewpoint - The revised "Trust Company Management Measures" will take effect on January 1, 2026, marking the first comprehensive update since its implementation in 2007, aimed at enhancing risk prevention, transformation, and effective regulation of trust companies [1][3]. Group 1: Key Revisions - The revised measures focus on four main areas: emphasizing the core responsibilities of trust companies, strengthening corporate governance, enhancing risk prevention, and reinforcing regulatory requirements [3][4]. - Trust companies are now required to establish a Chief Compliance Officer as per regulatory guidelines, a move that aligns with earlier regulations introduced in March 2023 [6][7]. Group 2: Business Scope Adjustments - The business scope of trust companies has been adjusted to include three main categories: trust business, proprietary asset liability business, and other services [4][11]. - The trust business has been refined to consist of asset service trusts, asset management trusts, and charitable trusts, while proprietary asset liability business now allows for liquidity loans from shareholders and related parties [4][5]. Group 3: Risk Management and Compliance - Trust companies must enhance their risk management frameworks, focusing on compliance and operational risks, and are required to establish a risk reserve management mechanism [10][11]. - The measures prohibit trust companies from promising asset safety or guaranteed minimum returns, and they must ensure that investment products align with investors' risk tolerance [10][11]. Group 4: Governance and Accountability - The revised measures emphasize the importance of corporate governance, requiring independent directors to lead key committees related to audit, nomination, and remuneration [12]. - Trust companies are mandated to manage shareholder behavior and related transactions rigorously, ensuring fair market practices and preventing regulatory arbitrage [12].

Core Viewpoint - The revised "Trust Company Management Measures" aims to enhance the regulatory framework for trust companies, focusing on business structure, governance, risk management, and compliance with new asset management regulations [1][2][3] Group 1: Business Structure and Governance - The revision reduces the business scope of trust companies to three main categories: trust business, asset-liability business, and other business, emphasizing a return to core functions [3][6] - The minimum registered capital for trust companies is raised from 300 million to 500 million yuan, reflecting a stricter governance framework [6][9] - The new regulations require trust companies to establish a dedicated committee for protecting the rights of trustees and beneficiaries, ensuring that their interests are prioritized [6][7] Group 2: Risk Management and Compliance - The draft outlines nine prohibitive behaviors for trust companies, including a ban on guaranteeing principal and returns, aiming to eliminate past irregularities in the industry [4][5] - Trust companies must maintain comprehensive records of trust transactions for at least 15 years and report on the management and use of trust assets to clients [4][6] - Enhanced scrutiny of shareholder and executive behavior is mandated, with requirements for timely reporting of any violations to regulatory authorities [6][9] Group 3: Regulatory Alignment and Industry Impact - The revised measures align with recent asset management regulations and the classification of trust business, promoting high-quality development in the industry [1][2] - The changes may impose operational pressures on smaller trust companies, necessitating capital replenishment and potential business contraction [1][10] - The focus on compliance and risk management is expected to improve the overall stability of the trust industry, while also increasing the operational demands on companies [9][10]