Core Viewpoint - The recent civil judgment reveals significant risks associated with Huaneng Trust Co., Ltd., as multiple investors have filed lawsuits due to the failure of trust products to repay principal and returns on time [1][3]. Group 1: Legal Issues - Investors purchased Huaneng Trust's "Huaneng Trust Jinying No. 30" trust product through Huishang Bank, with an initial investment of 2 million yuan, but were denied repayment after the product's maturity [3]. - Huaneng Trust claims that the trust contract allows for an extension of the product's duration from 12 months to 51 months without beneficiary consent, which contradicts investor understanding [3][4]. - The court found that Huaneng Trust failed to provide evidence that the trust funds were allocated to compliant underlying assets, leading to the conclusion that the company improperly managed the trust funds, infringing on investors' rights [4]. Group 2: Fraudulent Activities - The underlying issue stems from a fraudulent scheme orchestrated by individuals associated with Shenzhen Xingrui Information Technology Co., Ltd., who forged insurance policies and misrepresented borrowers to obtain over 1 billion yuan in loans [1][8]. - Huaneng Trust and Huishang Bank were unaware of the fraudulent activities, which involved bribery and the creation of fake insurance documents to facilitate unauthorized loans [8]. Group 3: Industry Implications - This incident serves as a warning for the trust industry, highlighting the need for companies to enhance due diligence and risk management practices when engaging in non-standard business operations [1][10]. - The trust sector has seen a rise in fraudulent activities, necessitating stricter oversight and adherence to risk management protocols to maintain investor trust [10][11]. - Experts emphasize the importance of thorough background checks on borrowers and regular monitoring of insurance policies to prevent similar incidents in the future [11].