Trust is usually used in two situations: one is that the property owner hopes that the specific property can be added in value, thus bringing greater economic benefits to himself, but because he has no time, energy or financial management ability, he entrusts the property to the trust and borrows the management activities of the trustee to realize his wishes. On the other hand, the real estate owner wants to transfer part of his property to a third person, such as his children or relatives and friends, but considering some factors, such as the immaturity of the third person and lack of financial management experience, he does not want to transfer his property directly to the third person immediately. At this time, the property owner can deliver the property to the trust, and through the trust management of the trustee, the third party can enjoy the same or even richer benefits as the direct transfer, such as the trust property is effectively managed by the trustee. Trust is a new financial management tool, so what kind of trust business have trust companies launched at present?
With the promulgation of Trust Law 200 1 and the implementation of Management Measures for Trust and Investment Companies and Interim Measures for Fund Management of Trust and Investment Companies in 2002, trust companies have both legal protection and specific implementation rules. In this context, the trust business has developed unprecedentedly. According to incomplete statistics, by the end of August, 2003, in just one year, more than 40 trust and investment companies in China had re-registered and launched more than 20 trust products at the rate of nearly 10 per month, covering industrial market, money market, capital market and other fields. Below, I will briefly introduce the varieties of trust business launched by trust companies at present, hoping to let investors have a more rational understanding of this new type of investment and choose more investment channels.
Let's start with the basics. Let's talk about what types of trust products have been launched by trust companies at present.
Since last July 18, 38 trust companies have launched about 120 trust products, and the total amount of funds raised is about1500 million yuan. Even the SARS epidemic in the second quarter of this year had little impact on the issuance of trust products of trust companies, but the trust industry showed a momentum of accelerated development. According to the mode of capital utilization, there are 70 types of trust, 5 1 type of investment (including 24 types of securities, 26 types of industries, and foreign exchange 1 type), 4 types of initial subscription fees, 2 types of leasing, and 2 other types. According to the trust funds, there are 50 real estates, 24 capital markets, 3 1 municipal construction, 4 agriculture (breeding), 4 energy sources (electricity and natural gas), 2 environmental protection, and 65,400 foreign exchange, cement, software, metal materials (copper), biotechnology, chemicals, textiles and equipment (printing) leases.
Every investment and financial management method has a certain term, so what is the term structure of the trust?
"Measures for the Administration of Trust and Investment Companies" stipulates: "Trust and investment companies accept trust funds whose management methods are determined in their names, and their trust period shall not be less than one year." This provision can be understood as the management wants the trust company to play the role of medium and long-term financing. Judging from the trust products launched by trust companies, the financing period of trust plans is mostly 1 year, 2 years and 3 years. What is the starting point of a single contract investment if you want to participate in trust investment?
; The Interim Measures for Fund Trust Management of Trust and Investment Companies stipulates that the number of trust contracts for trust companies to collectively manage, use and dispose of trust funds shall not exceed 200, and the amount of each contract shall not be less than the limit of RMB 50,000. Most products have a single contract investment starting point of 50,000 yuan, and the rest products have an investment starting point of 6,543,800+10,000 to 500,000 yuan. Because the maximum number of contracts for each trust product is 200, some projects with large capital requirements have to raise the threshold for single contract investment. The minimum amount of a single contract of Shanghai SDIC "Harbour New Town Trust Plan" is 500,000 for individuals and 5 million for institutions; The minimum amount of a single contract between Chongqing SDIC "Jinglong International Apartment Project Fund Trust Plan" and Sino-Thai Trust "Shanghai Bund Sightseeing Tunnel Fund Trust Plan" is 400,000.
Now our investors are becoming more and more rational, and more and more people will pay attention to the low-risk and high-yield financial management methods. So how to determine the expected rate of return of trust products? How to attract investors? ：
On the whole, the expected rate of return of trust products is generally higher than other investment products in the same period. The expected rate of return is closely related to the use direction of trust funds and the style of trust companies. Most of the trust funds with higher than the average expected income level are used for real estate projects (except for CITIC Trust's "Trust Plan for Collective Funds of Kangju Project", the expected income of other real estate trust plans is higher than the average level). All products of Chongqing SDIC, Jin Xin Trust, CreditEase International, Zhou Su Trust, Foreign Trade Trust, Xinjiang SDIC and our company are higher than the average expected rate of return; At the same time, the expected rate of return of infrastructure construction trust plans is mostly lower than the average level.
I also mentioned risks just now. How to control risks and ensure returns has become a topic that has to be said. How to control risks specifically?
H trust products are more market-oriented in ensuring income and controlling risks. Except for some products such as Zhongyuan Trust "Jiaozuo Infrastructure Construction Project Loan Fund Trust Plan", most products adopt commercial risk control methods such as third-party guarantee, bank guarantee and insurance company performance guarantee insurance. China Coal Trust's "Beijing Chegongzhuang Reconstruction Community Loan Project Collective Fund Trust Plan", Zhongtai Trust's "Shanghai Bund Sightseeing Tunnel Fund Trust Plan" and CITIC Trust's "Kangju Project Collective Fund Trust Plan" are guaranteed by a third party; Shanghai Guotouhai's "Harbour New Town Trust Plan" is guaranteed by CCB; Ping An Trust's "Joint Car Loan Collective Fund Trust" uses the performance guarantee insurance of insurance companies to guarantee income and control risks.
Trust companies have always taken the slogan of "financial management by experts", so how do experts charge?
The vast majority of products adopt the charging mode linked with performance. For example, the collective fund trust plan of Beijing Chegongzhuang Rebuild Community Loan Project of China Coal Trust stipulates: "(1) If the distributable rate of return of trust property in that year does not exceed 4.6%, no trust reward will be collected in this financial year; (2) If the distributable rate of return of the trust property in that year exceeds 4.6% but does not exceed 5.7%, the trust reward collected in that year is: trust funds * (distributable rate of return-4.6%); (3) If the distributable rate of return of trust property exceeds 5.7% in that year, the trust reward collected in that year is: trust funds *[ 1. 1%+ (distributable rate of return -5.7%)*0.5]. This charging mode is in sharp contrast with the fixed management rate adopted by the fund industry at present, and it is also a major selling point of current trust products.
The above is an overview of the trust business launched by the trust company. In order to make it easier for investors to understand, I will further introduce the trust products launched by trust companies through corresponding typical cases according to the different ways of using trust funds, covering the main capital investment as much as possible.
trust loan
Trust loan means that the trustor entrusts the legally owned funds to the trust and investment company based on his trust in the trust and investment company, and the trust and investment company makes financing to the designated borrower in its own name according to the wishes of the trustor, so as to benefit the beneficiaries. Trust loan is the mainstream business launched by trust companies at present. By the first half of 2003, the total amount of funds used was about 9.9 billion yuan, accounting for about 70% of the total funds. Trust funds mainly invest in real estate and infrastructure; The term is mostly 1-3 years; Limited by the central bank's loan interest rate, the yield fluctuates between 3% and 5%; Third party guarantee or pledge is mainly used to control the risk of guarantee income.
Can you give an example?
Take Qingdao real estate development loan trust plan launched by our company as an example: In recent years, due to the continuous improvement of residents' income level and the reform of welfare housing distribution system, the real estate industry is heating up and the profit rate of the industry is very rich. However, as a capital-intensive industry, it is difficult for ordinary investors to share. Due to various restrictions of the central bank's policies, it is difficult for real estate developers to obtain loans from commercial banks and face a large funding gap. Qingdao is located in the southeast of Shandong Peninsula, surrounded by water on three sides and backed by Laoshan Mountain, a famous Taoist mountain. Qingdao, as the only venue for the 2008 Olympic Games, provides a huge imagination space for the local real estate industry. Lu Xin Weiyang Garden is located in Qingdao Shilaoren Tourist Resort, bordering Fushan Forest Park in the north and Sculpture Park in the south. Land area11/422 square meters, total planned construction area of 76,660 square meters, plot ratio of 0.688, and greening rate of 4 1.5%. Development and construction in two phases. The planned construction area of the first phase is 59,800 square meters, all of which are 5-7-storey apartments; Underground 1 1000 square meters, semi-underground parking lot. The first phase of the project is scheduled to be completed, accepted and put into use before the end of 2004. The planned construction area of the second phase is16660m2, which is the best villa. The total estimated sales revenue is 795.02 million yuan. It is in this big environment that our company provides trust loans to Luxin Weiyang Garden Project developed by Shandong Lu Xin Real Estate Co., Ltd.
Term and scale of funds,
Application of loan funds
Source and distribution of trust income, investors' expected annual rate of return and trust income.