Economic Watch: China's trust sector bets big on real economy opportunities

Amid the overcapacity cutting campaign and price swings, the steel sector might not be a good investment target at first glance, but some financial institutions are hoping to strike gold amid the market's upgrading.

Via partnership with Zhaogang.com, a leading digital B2B platform in China that brings together steel producers and consumers, Bohai International Trust Co., Ltd. has launched a trust product that offers loans to steel purchasers to enable efficient deals on the platform. Over 9,000 firms along the steel industrial chain have benefited from the trust product, which leverages Zhaogang.com's matchmaking services to enhance the steel sector's efficiency.

渤海信托通過與中國領先的數字化B2B平臺“找鋼網”合作，將鋼鐵生產商和消費者聚集在一起，推出了一款信托產品，向鋼鐵購買者提供貸款，以實現該平臺上的高效交易。該信托產品使得鋼鐵產業鏈上的9000多家公司獲益，提高了鋼鐵行業的運轉效率。

The trust firm has invested over 330 billion yuan (about 47 billion U.S. dollars) in manufacturing, infrastructure, energy conservation, environmental protection, industrial upgrading and other real economy fields, according to the company's president Ma Jianjun.

渤海信托總裁馬建軍表示，公司已在制造業、基礎設施、節能、環保、工業升級和其他實體經濟領域投資超過3300億元人民幣（約合470億美元）。

Like Bohai International Trust's investment, China's trust fund flows are shifting direction as the country keeps a tight rein on speculation and ups investment in the real economy.

China has stepped up regulation on irregular financial practices to forestall financial risks in recent years.

At the end of September, total entrusted assets balance of the country's 68 trust firms stood at 22 trillion yuan, down by 2.39 percent quarter on quarter, data from the China Trustee Association showed.

The trust fund balance in the real estate sector shrank by 148.07 billion yuan at the end of September compared with the end of June, the first quarter-on-quarter drop in over three years.

Industrial and commercial firms remained the biggest destination for trust funds flows. During the first three quarters, the sector saw new trust investment of 1.09 trillion yuan, accounting for about one-third of the overall new trust investment during this period.

The basic industries registered new trust investment worth nearly 140 billion yuan in Q3, up over 60 percent year on year.

"Serving the real economy is the trust sector's primary role," said Lai Xiufu, head of the trust institution supervision department with the China Banking and Insurance Regulatory Commission.

Lai said that despite enhanced regulation, the country's economic shift is "creating many fresh opportunities for trust firms" such as investing in the green sector and expanding direct investment.

Trust firms could play a unique role in supporting the real economy, as they can offer customized services by means of flexible investment tools while guarding against financial risks with advanced risk management technologies, Ma said.

馬建軍認為，信托公司可以通過靈活的投資工具提供定制服務，并借助先進的風險管理技術來防范金融風險，以不斷支持實體經濟發展。

本文轉載自新華社11月30日報道