Core Viewpoint - The National Financial Regulatory Administration has revised the "Measures for the Administration of Trust Companies," marking the first update since its implementation in 2007, aimed at enhancing governance, risk management, and operational rules within the trust industry to support high-quality development [1][4]. Regulatory Framework - The trust industry has seen a significant growth in asset scale, from less than 300 billion yuan in 2000 to 26.25 trillion yuan in 2017, but has faced a decline since 2018 due to over-reliance on financing and channel business [3]. - The revised measures are part of a broader regulatory upgrade, aligning with the "Guiding Opinions on Regulating Financial Institutions' Asset Management Business" and the "New Classification of Trust Business" [1][4]. Company Governance and Internal Control - The new measures emphasize corporate governance, integrating party leadership and shareholder responsibilities, and establishing a priority for beneficiaries' interests [5][6]. - Trust companies are required to develop a comprehensive internal control system and risk management framework, focusing on compliance and operational risk prevention [6]. Business Focus and Operations - The revised measures categorize trust business into three types: asset service trusts, asset management trusts, and public welfare trusts, while eliminating unrelated intermediary businesses [9][10]. - The measures maintain the loan function for trust companies, which is seen as beneficial for promoting inclusive finance and serving the real economy [9]. Regulatory Requirements and Risk Management - The measures detail administrative review processes, on-site inspections, risk monitoring, and early warning systems, establishing a dual mechanism of external regulation and internal constraints [11][12]. - Trust companies are held accountable for developing recovery and disposal plans, with clear conditions for shareholder dividend restrictions [12]. Implementation Timeline - The revised measures will take effect on January 1, 2026, with the regulatory authority monitoring compliance as part of its classification supervision [12].

Group 1: Financial Services Overview - China Oil Finance is a non-bank financial institution approved by the People's Bank of China, providing services such as payment and settlement, loans, foreign exchange trading, and financial chain services [2] - Kunlun Bank, approved by the former China Banking Regulatory Commission, primarily engages in public deposit acceptance, loan issuance, domestic and international settlement, and public securities investment fund sales [2] Group 2: Trust Business Development - Kunlun Trust focuses on three main categories: asset service trust, asset management trust, and public welfare trust, covering various services including equity investment and family trusts [3] - Future efforts will aim to enhance the proportion of actively managed trusts and increase the dividend ratio of equity investment trusts, while continuously seeking efficiency improvements and cost reductions [3] Group 3: Regulatory Impact - The revised "Management Measures for Financial Leasing Companies" by the National Financial Regulatory Administration in 2024 will positively impact Kunlun Financial Leasing [3] - Kunlun Financial Leasing has consistently adhered to regulatory requirements, and the new regulations will provide clearer guidelines for business operations, including enhanced risk management and business classification supervision [3]