Core Viewpoint - The revised "Trust Company Management Measures" aims to drive the trust industry back to its core responsibility of serving as a trustee, enhancing risk management, and promoting high-quality development in the sector [1][2][3]. Trust System Construction - The new measures, effective from January 1, 2026, emphasize the importance of trust companies focusing on their primary roles, such as asset service trusts, asset management trusts, and charitable trusts, while moving away from arbitrage and off-balance-sheet financing [4][5]. - The revision reflects a significant shift from the previous regulations established in 2007, adapting to the evolving regulatory landscape and transformation needs of the trust industry [2][3]. Risk Management - The new regulations introduce stricter capital requirements, risk management mechanisms, and compliance measures to enhance the overall risk resilience of trust companies [3][6]. - Prohibited practices include fund pooling, channel business, and rigid repayment, which have been identified as major risk factors in the past [6][7]. - The measures also mandate the establishment of a specialized committee for protecting the rights of trustees and beneficiaries, ensuring that beneficiary interests are prioritized [5][6]. Industry Dynamics - The implementation of the new measures is expected to accelerate the elimination of weaker players in the trust industry, concentrating resources among stronger institutions [7]. - Companies that adapt to the new regulations and focus on compliance and core innovations will likely gain a competitive edge, while those relying on high-leverage models may face significant challenges [7].