Core Viewpoint - China Trust Registration Co., Ltd. (China Xindeng) will implement new requirements for asset management trust products starting from September 2025, mandating portfolio investment to avoid single financing for trust businesses [1][2]. Group 1: Regulatory Changes - New pre-registration review standards for trusts will take effect on September 1, 2025, requiring trust companies to adopt portfolio investment strategies [1]. - The regulatory body has indicated that asset management trusts should primarily use portfolio investment to mitigate risks, with plans to revise relevant regulations [2]. Group 2: Industry Response - Trust companies are currently observing the situation regarding the new portfolio investment requirements, with expectations that the impact on actively managed trust businesses will be manageable [3]. - Many trust companies have already begun implementing portfolio investment strategies in their self-issued asset management trust products, particularly in standard and non-standard trusts [4]. Group 3: Challenges and Considerations - The shift to portfolio investment increases management complexity for trust companies, as they must now manage multiple projects within a single trust product, which poses challenges in aligning project timelines and credit evaluations [4].

Core Viewpoint - The new trust pre-registration review standards set to be implemented by China Trust Registration Center on September 1, 2025, will end the single financing model for non-standard trust products, requiring asset management trusts to adopt a diversified investment approach [1][2]. Group 1: New Regulations - Starting from September 1, 2025, the updated trust registration guidelines will mandate that asset management trusts must implement a combination investment requirement, prohibiting the practice of providing financing to a single borrower [1][2]. - The new guidelines will also introduce requirements for transparent disclosure of transaction chains, including details about special purpose vehicles (SPVs) and the final underlying assets [2]. Group 2: Impact on the Industry - The new regulations are expected to have no substantial impact on standard asset management trusts but will significantly affect non-standard trusts, effectively ending the single borrower model [2]. - Currently, the proportion of non-standard trusts utilizing combination investments is relatively low, indicating a need for industry adaptation [2]. Group 3: Benefits of Combination Investment - Implementing combination investments can mitigate non-systematic risks, as reliance on a single financing party can lead to significant asset devaluation if issues arise [2]. - The shift towards combination investments is anticipated to realign trust companies' roles back to asset management, focusing on maximizing beneficiary interests rather than merely serving financing parties [2]. - This change is expected to enhance the professional investment capabilities of trust companies, promoting sustainable industry development and improving service quality to the real economy [2].

Core Viewpoint - The new trust registration guidelines issued by China Trust Registration Center will require trust companies to adopt a diversified investment approach for asset management trusts, effectively ending the single financing model for non-standard trusts starting from September 1, 2025 [2][5][4]. Group 1: New Guidelines and Requirements - The updated trust registration guidelines (V3.0) will implement new pre-registration review standards, emphasizing the need for diversified investment in asset management trusts [4][3]. - Trust companies are required to ensure that asset management trusts do not primarily provide financing to a single borrower, promoting a diversified investment strategy across various assets and financing parties [5][6]. Group 2: Implications for the Industry - The shift towards diversified investment is expected to mitigate risks, enhance the core asset management capabilities of trust companies, and improve the quality of services provided to the real economy [7][9]. - The regulatory changes align with previous directives from the China Banking and Insurance Regulatory Commission, which emphasized the need for trust companies to conduct asset management trusts through collective funding plans [8][9]. Group 3: Current Trends and Challenges - Some trust companies have begun exploring diversified investment models for non-standard trusts, with a notable rise in the "non-standard + standard" investment approach observed in the market [10]. - Despite the growing interest, the overall proportion of diversified investment in non-standard trusts remains relatively low, and challenges such as synchronizing project timelines may affect investor experience [10].