The trust industry reproduces millions of fines.
Recently, the Shanghai Banking and Insurance Regulatory Bureau issued a ticket, pointing at Aijian Trust, requiring the company to order correction and impose a fine of 4 million yuan. General manager Wu Wenxin and executive deputy general manager Wu Chun were given warnings respectively.
The main violations show that Aijian Trust has 8 violations:
In September 2020, the classification of some inherent loan risks of the company was inaccurate.
From April to September 2020, the company carried out some related party transactions without prior reporting to the regulatory authority.
From February to October 2018, the company issued working capital loans to some real estate development enterprises.
In March 2020, the company seriously violated the prudent operation rules for the risk control and follow-up management of a trust plan.
From October 2019 to may 2020, the company illegally issued trust loans to real estate projects with insufficient capital.
From February to October 2020, the company issued trust loans to real estate development enterprises without secondary real estate development qualification.
In March 2020, an inherent loan of the company was not paid as required.
In July 2020, the term structure design of a trust plan of the company seriously violated the prudent operation rules.
The relevant person in charge of Aijian Trust replied to the interface news reporter: “It is the normal handling of a small number of compliance problems found by the regulatory authorities after the implementation of routine comprehensive on-site inspection. Our company has strictly implemented the regulatory opinions and completed the rectification. At present, all operations and management work is good. In the follow-up, our company will continue to improve the compliance operation level under the guidance of the regulatory authorities and Shanghai Aj Group Co.Ltd(600643) to better serve the real economy.”
From the disclosed ticket in 2022, Aijian Trust is the second trust company fined in the year after Yunnan trust.
On January 10, Yunnan banking and insurance regulatory bureau announced that it would impose a fine of 500000 yuan on Yunnan trust because it illegally issued land reserve loans with trust funds; On January 29, Yunnan banking and insurance regulatory bureau announced that it would impose a fine of 800000 yuan on Yunnan trust because it failed to effectively control the additional charges from third-party cooperative institutions to borrowers and was seriously careless in personal loan business.
According to the company’s official website, Aijian Trust, founded in August 1986, is the first private non bank financial institution in China since China’s reform and opening up. The registered capital of the company is 4.6 billion yuan, and the controlling shareholder Shanghai Aj Group Co.Ltd(600643) ( Shanghai Aj Group Co.Ltd(600643) . SH) holds 99.33%.
From the regulatory ticket, it can be found that the main violations of Aijian Trust come from 2020 and are inseparable from the real estate business.
It was also in this year that the company put forward the transformation and development plan, focusing on “four, two and four”, that is, four special projects of business management reengineering, the second curve of business transformation and business ecology. The four reengineering include organizational structure reengineering, production system reengineering, risk control system reengineering and elite team reengineering. It includes the construction of digital trust and digital economy.
The recently disclosed annual report shows that by the end of 2020, the company’s trust assets totaled 129241 billion yuan. Among them, in terms of investment areas, real estate accounts for the highest proportion, up to 43.53%, followed by industrial and commercial enterprises and basic industries, with 17.99% and 17.02% respectively.
Aijian Trust said in its annual report that the new regulatory policy puts forward strict index requirements on the trust company’s collective financing trust, counterparty concentration, the proportion of inherent capital investment trust plan and related party transactions. Once officially released and implemented, the trust company will face rigid transformation pressure.
Performance in the company’s performance, revenue and net profit have declined by varying degrees. In 2020, the company achieved a total operating revenue of 2.382 billion yuan, a year-on-year decrease of 6.90%; The net profit was 1.211 billion yuan, a year-on-year decrease of 2.19%.
According to the unaudited financial data of 2021, the company achieved an annual operating revenue of 2.377 billion yuan, a year-on-year decrease of 4.01%; The net profit was 930 million yuan, a year-on-year decrease of 23.21%.
In this regard, Shanghai Aj Group Co.Ltd(600643) explained that the current income and profit of Aijian Trust were greatly affected mainly due to the continuous pressure drop on the scale of financing and channel trust business by the industrial regulatory policies.
