CITIC Leads Trusts with ￥640 million in Bad Assets; HIT Shouchang Exits All Trust Holdings

CITIC has the most bad assets among trust companies at ￥640 million, but this number is actually down from 2012, when it was ￥707 million. CITIC was also number one in bad assets at that time.

Other firms with over ￥100 million in bad assets are: Ping An Trust, ￥273 million; Xinhua Trust, ￥251 million; Minmetals Trust, ￥230 million; Chang'an Trust, ￥132 million; and Jingu Trust, ￥132 million. Bridge Trust is close behind at ￥99.9 million.

Bad assets are set to spike, assuming more defaults, because trust companies have been making investors whole and assuming underlying assets in cases of default.

Speaking of bad assets, in this article, 百瑞信托追债集合项目 “信信交易”猛增至35亿, there is discussion of how the aforementioned Bridge Trust has turned into a debt collector. One firm mentioned in the article is HIT Shouchang.

The firm HIT Shouchang was covered in March as part of this post: Chinese Corporate Investors in the Dark as Trust Investments Falter. The firm bought trust products because the returns were better than their own operations were producing. As defaults in the industry mounted though, the firm became worried about the situation. Return of capital became the paramount concern.

Recently, the firm finished exiting all of its trust holdings, the last being a product issued by Bridge Trust.

工大首创全额收回信托本息 兑付危机有惊无险 (Google translates HIT Shouchang as workers first)

May 21, workers first announced that May 19 was recovered buy Bridge Trust "poly gold on the 20th Capital Trust products" principal of 40 million yuan and 2.8 million yuan revenue. Coupled with the trust scheme had expired financial products and AVIC Trust, workers first use its own funds related investment so far has finally fully recovered.

　　August 2012, the Board considered the first great work by the relevant motion, agreed to authorize the Company's management and the Company's wholly-owned agencies in ensuring the company's normal operations and capital investment needs of the premise, using its own funds less than 50 million yuan scroll use, purchase financial products issued by financial institutions and trusts issued by the trust plan products.

　　After the bill is passed, workers first four pen investments have been carried out, the first two pen occurred at 2012 and 2013, the purchase of bank financing, funds available are 40 million yuan, profit 404,400 yuan each (collectively, the annual yield of 4.1 %) and 476,300 yuan.

　　After the successful operation of the two bank finance. Workers first turning to the trust field. First out of 10 million yuan of its own funds, the subscription "Aviation Trust? Tianfu the 26th Capital Trust scheme (query trust products)," a term of 12 months. The project also works great first basic "custom" product, the total size of 11 million yuan, workers first held in trust share will reach 10 million yuan.

　　March 26, workers first announced that the Central Air Trust initiated and established "Aviation Trust? Tianfu the 26th Capital Trust scheme," the original to the date of March 19, 2014, according to the trust document conventions, trust automatic extension to allow all-cash assets so far. As of the announcement date, due to the emergence of China Aviation trusts the maturity can not be cashed in, causing the company is currently unable to recover the principal and the corresponding revenue.

　　Workers first scheduled payment to purchase products can not trust the news caused great concern to investors. Parent Aviation Aviation Investment Trust announced that the next day by a subsidiary of China Aviation Trust to verify, as agreed in the Air Trust can fully trust these workers first payment of principal and corresponding gains.

　　March 29, workers first announcement said by the company to contact with AVIC Trust Co., AVIC Trust Co. on March 28, 2014 on its website public disclosure of the "Tianfu the 26th Capital Trust scheme liquidation report . " Meanwhile, the company purchased 10 million yuan on the same day to recover trust funds and trust products gain the trust of $ 761,250.00.

　　Currently, workers first all principal and interest trust management has fully recovered, the investment rate of return of approximately 7.1%. But workers first in the announcement did not disclose whether it will continue to invest trust in products.

My guess is they will not.

Here is the article on trusts firms with the most bad assets:
信托公司不良资产排行榜：中信信托6.4亿居首

According to the annual statistics show that in 2013 only trust industry asset size and profit growth slowing trend showing the same time, the amount of non-performing assets of the trust industry is also cumulative.

Trust with interest handsome country allows a researcher said that non-performing assets ratio is a reflection of the inherent business operating funds important indicator of good or bad, despite the inherent asset management and trust asset management are isolated from each other, but inherent in asset management is good or bad, from one side reflects the trust asset management capabilities. Generally, the higher the index, indicating that trust deposited, can not participate in the more normal functioning of the operating funds, capital utilization worse. The smaller the index value, the better, 0 represents the optimal level.

Trust is currently performing assets mainly refers to non-performing part of the self-employed assets. According to statistics, in the 68 trust companies, a total of 27 companies performing assets exist, accounting for 39.71%. Among them, seven trust companies performing assets reached billion.

CITIC Trust's non-performing assets was 642.3 million yuan, compared to 707 million yuan by the end of 2012 had declined 24.79% of the total sum of non-performing assets of the industry, the industry ranked first in the scale of non-performing assets. In fact, the size of non-performing assets in 2012, CITIC Trust also ranked first in the industry.

"Intrinsic business to achieve a further improvement in asset quality, the successful implementation of the risk of releasing part of the non-performing assets." CITIC Trust in its annual report describes the ability to control their bad assets.

In addition, Ping An Trust, Xinhua Trust, Minmetals Trust, Trust and Jingu Trust Chang'an non-performing assets over one hundred million yuan, respectively, 273,400,000 yuan, 251,100,000 yuan, 230,300,000 yuan, 131,900,000 yuan and 131.5 million yuan. The amount of non-performing assets of nearly Bridge Trust billion yuan, up 99.9 million yuan. There are non-performing assets in the trust, the trust's non-performing assets $ 30,000 Lujiazui, relatively minimal.