Core Insights - The report titled "China Trust Industry Research Report (2025)" has been officially released by China Construction Investment Trust, marking its thirteenth consecutive year of providing independent and professional industry analysis and trend assessment since its inception in 2013 [1][3] Industry Overview - The report is now part of the "Chinese-style Modernization Research Series • Think Tank Series" and systematically outlines the development trajectory of China's trust industry for 2024, analyzing key areas such as trust business, inherent business, risk management, and regulatory environment [3] - The trust industry is at a critical juncture between the conclusion of the 14th Five-Year Plan and the planning of the 15th Five-Year Plan, with the next five years being crucial for deepening reforms, managing risks, returning to fundamentals, and achieving high-quality development [3] Strategic Focus - The report emphasizes the strategic mission of the trust industry in implementing the financial "Five Major Articles," exploring topics such as the synergy between technology trust and the cultivation of new productive forces, innovation of trust products under the green finance concept, the role of inclusive trust in grassroots governance, and the exploration of business models for pension service trusts [3][4] - The industry is gradually constructing a new development pattern characterized by "risk convergence, subject differentiation, and functional reshaping" under the influence of improved regulation, orderly risk clearance, and continuous structural optimization [3] Future Directions - China Construction Investment Trust aims to continue supporting the trust industry with professional research, closely aligning with national strategies and industry trends to promote functional reshaping and value enhancement in the context of serving the Chinese-style modernization process [3][4] - The company will further explore key areas such as technology finance, green trust, inclusive services, and pension trusts, contributing to the establishment of a multi-tiered, high-quality financial service system [4] - The organization is committed to building an industry communication platform to foster positive interactions among regulators, markets, and institutions, collaborating with various sectors to create a new vision for high-quality development in the trust industry [4]

Core Viewpoint - The trust industry is undergoing a transformation and is currently facing profitability challenges, with a significant decline in trust business income and net profit in the first half of 2025 compared to the same period in 2024 [1][10][11]. Financial Performance - As of the first half of 2025, 53 trust companies reported a total trust business income of 181.31 billion yuan, a year-on-year decrease of 11.38% from 204.59 billion yuan in the same period of 2024 [7][4]. - The net profit for these companies was 163.74 billion yuan, down 2.83% from 168.51 billion yuan in the previous year [7][4]. - Overall, the operating income for the industry decreased by 1.98%, and total profit fell by 3.72% year-on-year [2]. Business Structure Changes - The trust business is under pressure, with traditional high-yield trust business continuing to shrink, while proprietary business income has shown strong growth, increasing by 16.72% year-on-year [4][11]. - The decline in profit metrics is less severe than the drop in trust business income, indicating that trust companies are actively working on cost reduction and efficiency improvements [4]. Industry Challenges - The trust industry is transitioning from a traditional "interest margin-driven" profit model to a new model based on "management fees + performance sharing," which has led to a significant drop in trust business income [11][18]. - Increased compliance and operational costs due to stricter regulatory requirements are also impacting profitability [11]. - The industry is still dealing with legacy risk projects, which continue to erode profits [11]. Future Outlook - Experts believe that the trust industry, with its dual advantages in asset management and wealth management, has the potential for sustainable profitability and high-quality development as new business models are gradually adopted [1][17]. - The restructuring of profit models is seen as a critical necessity, with a focus on new business areas and enhancing active management capabilities [15][18]. - The industry is expected to stabilize and potentially recover as the proportion of new business increases and risk management continues [18].