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].

Core Viewpoint - The risk disposal process of Huaxin Trust is nearing completion after five years, with a high signing rate among investors for the trust beneficiary rights transfer contract [1][2]. Group 1: Signing Progress - As of September 24, 2025, 3,004 individual investors have signed the trust beneficiary rights transfer contract, achieving an overall signing rate of 95.5% [1]. - The signing window will officially close on September 25, 2025, at 16:30, after which any unregistered investors will forfeit their opportunity to sign [1][3]. - A small number of investors remain who have yet to sign the contract as of September 25, 2025 [1][3]. Group 2: Involvement of Local State Capital - On August 14, 2025, Huaxin Trust announced that Dalian Anding Enterprise Management Co., Ltd. would acquire the trust beneficiary rights of qualified individual investors by September 25, 2025 [2]. - Dalian Anding, established on July 31, 2025, has a registered capital of 10 billion yuan and is fully controlled by the Dalian Municipal Finance Bureau [2]. Group 3: Historical Context and Financial Impact - Huaxin Trust's risk disposal has been ongoing since April 2020, when its "fund pool" business was halted by regulators, leading to multiple product delays [5]. - Investors have received sporadic small percentage repayments, with the first transfer of trust beneficiary rights in June 2021 amounting to 5.2% of the principal [5]. - The total unpaid trust plan principal raised from social investors is approximately 7.08 billion yuan [6].

Core Viewpoint - Huaxin Trust is moving towards a restructuring plan, with personal investors set to receive compensation through the acquisition of trust beneficiary rights by Dalian Anding, a newly established state-owned platform [1][2][6]. Group 1: Restructuring and Compensation Plan - Huaxin Trust announced that Dalian Anding will acquire eligible personal investors' trust beneficiary rights by September 25, 2023 [2]. - The compensation plan allows investors holding multiple trust products to sign a single transfer contract, and the minimum compensation ratio is set at 90% of the investors' holding amounts [3][6]. - The restructuring plan is contingent upon Huaxin Trust's application for bankruptcy reorganization, which, if successful, would allow the company to continue operating [4][6]. Group 2: Background and Financial Status - Huaxin Trust, established in 1981, is the only trust company in Liaoning Province, with a registered capital of 6.6 billion [7]. - The company was classified as one of the six high-risk trust companies by the former China Banking and Insurance Regulatory Commission in 2019, leading to a halt in its "pooling funds" business [7][8]. - As of the end of 2019, Huaxin Trust reported total assets of 12.376 billion, with trust assets under management amounting to 61.58 billion, primarily in real estate and financial institutions [9].