BEIJING, March 1 (Xinhua) -- China is expected to transform and upgrade trust business sector with more specific business classification, strict measures, and stricter legal regulations in 2019, Xinhua-run China Securities Journal reported.
The country's financial regulator will be authorized to adopt more measures in law enforcement for trust industry, and impose specific classification for trust business to better monitor and prevent systemic risks, as well as promote healthy development of the industry, according to an industry insider.
The industry insider revealed that the new regulations of fund trust would offer public offering and private placement of trust products, which could issue public trust products to unspecified people at subscription starting price of 10,000 yuan.
To facilitate the establishment of a multi-level capital market, the trust business will be classified into three categories, that is, fund trust, service trust, and charitable trust.
Specifically, the fund trust products will be divided into financing trust and fund allocation trust products, while the most criticized trust products could be back to the repurchase from the previous prohibition.
The public offering trust is not an inclusive policy allowing all the trust companies to carry the business, and maybe only a few companies could obtain qualification at the beginning of the implementation, according to the industry insider.
China's structural leveraging for the capital market has achieved desired goal as predicted, enhancing the development of trust business in the future, according to the China Banking and Insurance Regulatory Commission (CBIRC), the industry regulator.
The information disclosure was highlighted that China's trust industry regulation will continue to focus on preventing and controlling financial risks, standardizing operations, and promoting transformational development, according to a senior trust researcher. (Edited by Jiang Feifan)
A single purchase
