Core Viewpoint - The trust industry is undergoing a significant transformation due to regulatory changes, moving from a reliance on non-standard financing to a focus on standardized asset management, which is essential for the industry's healthy development [1][3][10]. Group 1: Industry Transformation - The trust industry has shifted from traditional business models, such as non-standard financing, which previously accounted for over 90% of revenue, to a more diversified approach where these models now contribute less than 50% [2][10]. - New regulations, such as the "Trust Registration Business Guide," emphasize the need for trust companies to adopt a combination investment approach, marking the end of reliance on single financing models [2][10]. - The industry is transitioning from being "quasi-credit intermediaries" to "true asset management institutions," which will enhance the service attributes of trust companies [10]. Group 2: Financial Performance - The average revenue of 57 trust companies in 2024 was 1.109 billion yuan, a decrease of 17.89% from the previous year, indicating ongoing challenges in the industry [26]. - The revenue from traditional non-standard financing has been declining, with the management fees for such services dropping significantly, leading to reduced profitability for trust companies [15][26]. - The total assets of the trust industry reached 29.56 trillion yuan by the end of 2024, with real estate trust funds dropping to 840.2 billion yuan, marking a historic low of less than 4% of total assets [13][14]. Group 3: Employee Dynamics - The number of employees in the trust industry has decreased to approximately 16,000, with 54.39% of companies implementing layoffs, reflecting a trend of industry contraction [19][21]. - The workforce in the trust sector has shrunk from over 22,000 in 2021 to about 17,563 by the end of 2023, indicating a significant reduction in personnel [20][21]. Group 4: New Business Opportunities - Trust companies are exploring innovative business models, such as prepaid fund service trusts, to address consumer issues and enhance service offerings [5][26]. - The establishment of new departments focused on securities and special asset management reflects the industry's shift towards more specialized and diversified services [24][25]. - The need for professionalization and refined management practices has become crucial as the industry adapts to new regulatory environments and market demands [28][29].

Core Viewpoint - The recent public consultation on the revised "Trust Company Management Measures" is significant as it marks the first revision in 18 years and addresses a market worth 27 trillion yuan, impacting the future development of the trust industry and the public [1] Group 1: Industry Challenges and Regulatory Response - The trust industry has faced risks such as fund pool operations and channel business risks, leading to the need for regulatory intervention to guide the industry towards standardized development [1] - The introduction of a series of policies aims to facilitate the transformation of trust companies as a necessary path for survival in the current regulatory environment [1] Group 2: Service Focus and Social Value - The current focus of the trust industry is on service, with service trust scales accounting for approximately half of the market, highlighting the diverse applications of trust services for various social needs [2] - Examples of innovative trust services include special needs trusts for vulnerable populations, prepaid fund service trusts, property management service trusts, and the first administrative management service trust for water rights in Shanghai [2] Group 3: Regulatory Framework and Future Directions - The revised measures emphasize the "trustee positioning" and include prohibitive lists to reshape business boundaries, addressing key pain points in the industry's transformation [4] - Key prohibitions include the end of rigid repayment, a ban on channel business without substantial services, and the establishment of a firewall against related party transactions to enhance trustee responsibilities [4] - The revision introduces internal governance principles aimed at maximizing beneficiaries' legal interests and fostering a culture of trust, which is expected to accelerate self-reform within trust companies [4] Group 4: Future Outlook - The implementation of the revised measures is anticipated to make trustee capability a benchmark for the industry, with many trust companies already working on their growth trajectories [5] - The future development of the trust industry is expected to focus on depth of professional expertise rather than the speed of scale expansion, indicating a promising outlook for the sector [5]

Core Insights - Shanghai Trust, a key member of SPDB, has been serving national strategies and the real economy since its establishment in 1981, and is now a leader in family service trusts in China [1][2] Group 1: Wealth Management and Trust Services - China has become the world's second-largest wealth management and asset management market, shifting the focus from availability to quality in wealth management services [1] - Shanghai Trust has accumulated approximately 2,000 family service trust cases, with a total scale of about 3 billion yuan, ranking first in market share nationwide [1] - The company has launched the first "cash + real estate" family service trust in the country, broadening access to trust services for ordinary families [2][3] Group 2: Innovation in Trust Products - Shanghai Trust is actively innovating in various trust areas, including real estate trusts, special needs trusts, elderly care trusts, and intellectual property trusts [2] - The company has developed a unique elderly care service trust account to address issues related to wealth transfer and care for the elderly [3] - A special needs trust has been established to provide comprehensive services for vulnerable groups, integrating various assets and social resources [3] Group 3: Support for Innovation and Consumer Protection - Shanghai Trust has collaborated with local institutions to create the first corporate-operated intellectual property service trust, enhancing clinical innovation and commercialization [4] - The company has introduced a prepaid funds service trust to manage consumer prepaid funds, ensuring financial separation and protection against merchant insolvency [6][7] - The risk disposal service trust, established to address project crises, has a scale exceeding 4 billion yuan, demonstrating the company's commitment to safeguarding creditor rights [7]