Trust and security under thunderstorm tide

The storm surge in the online lending industry, which started from June 2065438 to June 2008, has made 95% of the platforms history. Represented by many "pseudo-private placements", this wave of financial innovation with China characteristics has given investors a vivid lesson in venture capital education. For some people, tuition is really expensive and the loss is heavy.

Loose monetary policy, sustained inflation, investment and financial management should continue. For investors with certain economic strength, what other fixed-income wealth management products can be purchased, which are both safe and more profitable than banks?

There is no doubt that the answer is "trust"

Many investors may have heard of this product before, but they still have doubts about its safety. Based on real data, this article will tell you from three aspects why trust is safer than imagined!

First of all, it should be noted that trusts are positioned in high-end and private placement compared with other wealth management products on the market, and the initial investment is usually 654.38+00,000 yuan (there are 300,000 trusts invested now, and if there is not even 300,000, you can only go back to the bank if you want to buy safe wealth management products). If you have the conditions for this investment, I believe the following contents will definitely help you.

First, the safety of trust at the level of laws and regulations-the most important reason is that trust companies are regular licensed financial institutions. At present, there are only 68 trust companies operating normally in the country, and it seems that there will be no new increase at present. Compared with thousands of banks, hundreds of brokers and futures companies in China, trust license is the scarcest and most valuable of all financial licenses in China.

Friends who know something about trust at the regulatory level know that trust is supervised by the trust department under the CBRC and also by the People's Bank of China. According to the regulations, the internal audit department of a trust company shall submit a copy of the above report to the central bank at least once every six months in addition to the internal audit report to the board of directors. As can be seen from the above description, trust is an institution that carries out risk management and operation under strict supervision-like banks, both belong to the regular army in the financial system.

At the legal level, the laws and regulations concerning trust mainly include "one law and three regulations", "People's Republic of China (PRC) Trust Law", "Measures for the management of net capital of trust companies", "Measures for the management of trust companies' pooled funds trust plans" and so on. It is the "one law and three regulations" of trust that stipulates the business scope and code of conduct of trust companies; At the same time, strict regulations have been made on the establishment of trust companies and the development of trust business. Therefore, trust companies strictly abide by the provisions of laws and regulations in actual operation, which is essentially different from institutions that are outside the supervision.

In addition, the trust has a guaranteed fund, which may be unfamiliar to some investors. The so-called guarantee fund is a mutual fund jointly raised by participants in the trust market to resolve and dispose of risks. Its essence is to play the role of "stabilizer" and resist "industry risks".

Summary: The above explains why the trust is safe from the legal and regulatory levels. Trust companies are financial institutions established in accordance with the relevant provisions of the Trust Law, strictly abide by the "one law and three regulations" and operate legally under the supervision of the China Banking Regulatory Commission. Trust is the regular army of China's financial system and one of the four pillars of China's financial system. By the end of 2065438+June 2009, the assets under trust management reached more than 20 trillion, making it the second largest asset management institution after banks.

Second, the product flow level of trust security-a trust product has seven steps from initial establishment to final establishment, and each step must follow certain processes and regulations. These seven steps are: product establishment, due diligence, internal audit, bill preparation, account opening, product collection and product establishment.

Early stage (product approval and due diligence)

In reality, trust companies do not do everything, which means that there is a certain threshold for the access of trust business, that is, policy guidance. Each company's guidelines have their own business development standards. Take the political trust project as an example, there will be a basic requirement for the region, financial income and subject rating of the counterparty (financier). This can be compared with company recruitment. Every company has a threshold for recruiting people, and the purpose of doing so is to control risks. So product approval is the first firewall of trust. A project can only enter the due diligence stage if it conforms to the guidelines and documents of the trust company, otherwise it will not last for an episode in reality. After the product project is completed, the due diligence stage is reached. Due diligence refers to the fact that the business manager of a trust company, as the trustee, conducts on-the-spot investigation on various financing matters of the trust. Through information collection and analysis, a comprehensive perspective on the counterparty is formed. Such as asset quality, operating conditions, cash flow, repayment ability and so on. Try to follow a strict process, which is the second firewall.

In progress (internal audit, regulatory filing and contract signing)

After completing the product project and due diligence, it is in the middle stage. This stage mainly includes internal review, document production and prior report, account opening and contract management. When the business manager of the trust company completes the due diligence, the project enters the internal audit stage. At this stage, the middle and back office of the trust company will review the project. For example, the compliance department reviews the compliance of the project to ensure that there is no compliance risk in the project; The wind direction department conducts risk review on the project and issues risk control opinions. After that, the project materials will be submitted to the project review committee, which will make a comprehensive judgment and draw a conclusion whether the trust product has passed the review. The reason for this is that there is only one purpose, to control risks. Evaluation is the most important stage, and the risk of trust and the feasibility of issuance are completed at this stage. It is stipulated that trust companies should report their products to the CBRC after completing the internal audit stage. Trust products should be declared and applied to the regulatory authorities in accordance with regulations, and the regulatory authorities will review the products according to laws and regulations, and only those that meet the requirements can enter the next stage. The next stage is to open a trust account and contract management. According to the relevant provisions of the trust law, trust property operates independently in the form of a third party, which is strictly distinguished from the trust company's own property. So in reality, there will be two accounts, one is an internal account and the other is an external account. After being approved by the regulatory authorities, it is necessary to sign a contract to ensure the promotion and distribution of the following products.

After that (promoting fund-raising and product establishment)

After the contract elements are determined, the trust products formally enter the fundraising stage. By this time, the trust will finally meet the investors, but strictly speaking, this is just a letter of recommendation. Whether the trust product can be finally established, whether the funds can be used for the project and whether the project counterparty can get the funds depends on the progress of raising the product. Only when the fund raising meets the requirements can the product be formally established, otherwise the trust cannot be established. If the fundraising fails, the investor's money will be returned to the investor's account intact.

Summary: From the three stages before, during and after the agreement, a trust product has to go through seven "disasters" before it can be finally established. On the one hand, complexity is stipulated by law, on the other hand, it is risk control.

Third, the safety of risk control measures-most domestic trust products or creditor's rights products, whether in the form of trust financing, stock+creditor's rights or agreed repurchase, the biggest risk for creditor's rights lies in the credit risk of the counterparty, that is, the risk of default. Therefore, when designing trust products, the first consideration is credit risk. For risks, trust products often take certain risk control measures to ensure the final payment of products and protect the interests of investors to the greatest extent. Therefore, this part mainly analyzes the risk control measures often adopted by trust products in order to help investors better understand the principle.

structured design

Structured design, also known as layering, is a common structural setting in trust products. Generally speaking, trust products are divided into priority and inferior level. Give priority to ordinary investors and enjoy the rights of fixed income and limited repayment; The inferior level is generally subscribed by counterparties or third parties, enjoying floating income and giving priority to project risks. To put it bluntly, the inferior level is equivalent to the city safety mat, and the priority is to sit on it.

guarantee

Pledge measure is a kind of risk control measure that investors are familiar with. Especially in real estate trust products, the counterparty's real estate (land, houses, projects under construction) is often added as a means of risk control and performance. Once the financier defaults or fails to pay the principal and income on schedule, the trust company can auction the collateral or pledge to realize the product payment, and generally evaluate the assets at a discount of 6-7 fold. In other words, if the asset value drops by 30-40% due to the auction, it can also ensure that the investor's principal and interest are covered. Through such risk control measures, the default risk of real estate trust products can be minimized.

guarantee

Guarantee is also a common risk control measure. Generally, there are third-party guarantees or group guarantees. For the guarantee, trust companies often have certain requirements, such as the credit rating can not be lower than the counterparty, and some even require higher than the counterparty.

Summary: The analysis of risk control measures aims to make people better understand the reasons for the safety of trust products. Compared with the uncertainty of online loan target and the risk control means of private equity products, trust is much safer and more reliable.

Four. Bank-trust cooperation

Trust products are the most popular investment targets for bank financing, and it is conservatively estimated that nearly 1/3 of trust assets come from bank financing funds; When banks buy trust products, they will be divided into different maturities (7 days to 3 years in the bank) and different fund shares (50,000 in the past, now 1 0,000 is enough) to meet the needs of customers that banks do not understand. Of course, the income of the product will be tied together again. So maybe you have been involved in the trust investment. Oh, don't you believe in the trust of the bank?

To sum up: trust is indeed safe. As a national licensed financial institution, trust is subject to the strictest supervision; A trust product goes through seven steps from initial establishment to final establishment, and strictly follows a set of processes and systems; The controllability of risks and the compliance of projects are unmatched by other financial products (informal institutions). Investment is risky, so be cautious when entering the market. It is hoped that investors will stay away from non-compliant financial institutions and choose financial products issued by formal financial institutions.