Crackdown: CIRC "Interviews" Real Estate Trusts, Some Suspend Business in Q3

财新：独家|22家信托公司被约谈 地产业务走向何方

A number of senior trustees told Caixin reporters that under the general requirements of supervision, the real estate business of the trust companies currently being interviewed is mainly rectified in three aspects: controlling the growth rate of real estate trusts, prohibiting “pre-finance” business, and channel. Business needs to be filed for approval.

...There were a total of 22 trust companies that were supervised in this round.

　　According to Caixin reporters from a number of trust businesses, the 10 companies interviewed by the China Insurance Regulatory Commission are Zhongrong Trust , AVIC Trust , Industrial International Trust , Bank of Communications International Trust , Everbright Trust , Minmetals Trust , and Barry Trust . Jiangsu Trust , universal Trust , national communications care ; 12 interviewees Beijing Insurance Regulatory Bureau silver company CITIC Trust , China Credit Trust , foreign trade Trust , great Britain and trust , COFCO Trust , Huaxin Xin care , livelihood trust , Jingu Xin care , SDIC Taikang Trust and so on.

Regulators are cracking down on pre-financing that gets the ball rolling for development projects:

In recent years, several trust companies in Beijing, such as CITIC Trust and China Credit Trust, have used the model of specific asset income rights to do a lot for real estate developers. business. This model mainly uses the trust funds in two phases. In the early stage, it invests in the equity rights of specific assets such as the equity income of the project company. After the funds are collected, it helps the real estate enterprises to obtain the land certificates and then invests in the development and operation projects.

　　These “pre-funding” businesses are often active collection management trust plans, which are subscribed by qualified investors. According to Caixin reporters, from the informed sources, under the guidance of the supervision window, the “pre-finished” collective trust plan that has not been filed has been directly suspended; the offenders are costly and will be subject to regulatory penalties.

　　Since the procedures of the trust plan are to be filed after successful recruitment, some trust companies have to process the trust plan that is being raised and has not been successfully filed. According to the Caixin reporter, Everbright Trust, CITIC Trust and SDIC Taikang Trust have all removed some products. Among them, a CITIC Trust product sold by China Merchants Bank and a product of SDIC Taikang Trust were suspended for refund.

　　A middle-ranking bank involved in the matter told Caixin reporter that the trust products that are generally raising funds have been negotiated with real estate companies. Now they are required to refund, which will directly affect the financing of housing enterprises. Although regulation does not take a “one size fits all” approach to real estate trusts, it will trigger a chain reaction of financial institutions, which is worth noting.

　　As Zhou Chuangnan, an analyst at Huachuang Securities , pointed out, although the proportion of trusts in real estate investment sources is not high, the importance of trust financing in the real estate sector is significant. The key point is that the real estate is highly leveraged. The key role of trust in front-end financing.