original title:China Merchants BankSubsequent to the default of the agency trust: real estate regulation and control of these real estate-related trusts may become a “hot potato”
Source: Times Weekly
Original title: Follow-up to the default of China Merchants Bank’s agency trust: real estate regulation, these real estate-related trusts may become “hot potatoes”
Trust default has always affected investors’ hearts.
Some media reported on August 14 that the Junrui No. 15 (Jiutong Foundation) fund trust plan sold by China Merchants Bank had materially defaulted and did not allocate interest for the second quarter of 2021 to investors, and on August 14, 2021 After the expiration, the trust benefit distribution plan was not clarified to investors.
The trust product specification shows that the scale of the trust plan is 500 million yuan, which is issued and managed by Daye Trust Co., Ltd. (hereinafter referred to as Daye Trust), and the funds raised will be used to supplementChina FortuneJiye Co., Ltd. (hereinafter referred to as China Fortune Land Development Co., Ltd.) wholly-owned subsidiary Jiutong Jiye Liquidity Fund.
At noon on August 16, Daye Trust and China Merchants Bank issued announcements in response to reports. Daye Trust confirmed that the trust plan has substantially defaulted, Daye Trust has not yet received the payment due from the financing party, and the guarantor has not fulfilled the guarantee responsibility. It has joined the China Fortune Fund Co., Ltd. debt committee on behalf of the beneficiary of the trust plan.
Up to now, the Debt Committee has not announced a debt resolution plan. Daye Trust stated that it will proceed from the protection of the interests of the beneficiaries of the trust plan and actively promote the work of the Debt Committee.
As a consignment bank, China Merchants Bank stated in its announcement that it would urge Daye Trust to properly resolve the distribution of trust benefits.
On the same day, a reporter from Times Weekly called Daye Trust, but the other party refused to respond.
On August 17, a person in the trust industry in Guangzhou told a Times Weekly reporter that since 2020, trust companies have continued to reduce channel business, which is “a lot of pressure.” At the beginning of the year, more than 20 companies were named by the regulatory authorities for failing to meet the standards. The default of Daye Trust sold by China Merchants Bank involves real estate. Under the background of real estate industry regulation, it is believed that the risk coefficient of real estate trust products this year is greater than before.
35 housing-related products were still issued in the first half of the year
Daye Trust is a non-bank financial institution re-registered on the basis of the reorganization of the original Guangzhou Science and Technology Trust and Investment Company. The company’s registered capital is 1.485 billion yuan, the largest shareholder is Oriental Assets, and other shareholders include Guangzhou Financial Holding Group and Guang Dongxin Electric Power Group.
According to Daye Trust’s 2020 annual report, its trust assets invested in the real estate industry are 14.455 billion yuan, accounting for 24.24% of its total assets, ranking third among all industries it invests in, with a high degree of concentration.
The subject of this default is the well-known real estate developer China Fortune Land Development. In fact, the default of China Fortune Land Development and its subsidiaries is not without warning. Prior to this, China Fortune Land Development had already experienced greater debt pressure.
China Fortune Land Development’s outstanding debts soared. In February of this year, China Fortune Land Development issued the “Announcement on the Failure to Repay Certain Debts of the Company and its Subsidiaries”, stating that due to the superimposed effects of the macroeconomic environment, industry environment, credit environment and the epidemic, the overdue debts of the company and its subsidiaries were involved The principal and interest amount of 5.255 billion yuan, and by July 31, this data has increased to 81.566 billion yuan, a growth rate of as high as 1452.15%. The main forms of debt are bank loans, trust loans and overseas bonds.
The expansion of debt scale has a significant negative impact on China Fortune’s external rating. In March of this year, China Chengxin conducted a follow-up rating on the 6 corporate bonds issued by China Fortune Land Development Co., Ltd. that are still within the validity period. All 6 bonds were downgraded from the initial AAA level to Grade C. At the same time, it lowered its main body rating for China Fortune Land Development to C. The reason for the downgrade is mainly due to the continuous increase in the scale of debt that China Fortune and its subsidiaries failed to repay as scheduled, and the failure of its subsidiary CFLD (Cayman) Investment Ltd to repay overseas US dollar debt on schedule.
Trading in bonds issued by China Fortune Land Development has been suspended due to the inability to pay interest and the lack of relevant repayment plans.
Subsidiaries are not the only ones unable to repay their accounts as scheduled. On July 31, China Fortune Land Development announced the “Announcement on the Plan for Controlling Shareholders to Concentrate and Passively Reduce Shareholdings”, stating that the reduction plan is based on the current liquidity shortage and the company’s performance decline in the first three quarters of 2020. Related financial The passive reduction of holdings caused by the institution’s mandatory disposal of the shares of China Fortune Land Development Co., Ltd. used as a means of business guarantee. If the reduction plan is implemented, the reduction will not exceed 78,274,400 shares.
In the first half of the year, the credit risk exposure of some real estate companies also had an impact on real estate-related trust products.
However, the Times Weekly reporters statistics from Daye Trust’s official website and usufruct trust studio data found that from January to August this year, Daye Trust had a total of at least 35 existing and newly issued real estate trust plans with a total amount of 3.91 billion yuan. The real estate companies involved included Evergrande,Sunshine City, Aoyuan, Sony Real Estate, etc.
Regarding the agency banks for the above 35 housing-related trust products, in addition to China Merchants Bank,ICBC、Industrial BankThe most products sold on consignment. Among them, Industrial Bank sells at least 8 trust products including Daye Trust·Jiaye No. 19 (Dongyuan Kunming) Collective Trust Plan (Phase 4).
China Merchants Bank’s housing-related business risks to be tested
The housing-related trust plan has received widespread attention and is not unrelated to China Merchants Bank, the agency’s distributor.
It is reported that at the agency level of China Merchants Bank, the investors of “Junrui No. 15” are high-net-worth natural person clients and family trust clients of private banking lines. This is also the first time that China Merchants Bank’s trust agency has defaulted on a natural person.
Intermediary business has always been an important source of profit for China Merchants Bank. The default of agency sales products may have an impact on the agency sales business.
The China Merchants Bank’s semi-annual report released on August 13 shows that as of the end of June 2021, the bank has achieved intermediate business fee and commission income of 52.254 billion yuan, a year-on-year increase of 23.62%, accounting for 30.97% of its operating income. Among them, the commission income from custody and other entrusted businesses was 15.882 billion yuan, a year-on-year increase of 17.14%.
In terms of asset quality, as of the end of June, China Merchants Bank’s non-performing loan balance was 54.242 billion yuan, a slight increase of 930 million yuan from the end of the previous year; the non-performing rate was 1.01%, a decrease of 0.06 percentage points.
While the overall asset quality has improved, the non-performing loan balances and non-performing loan balances of customers in the real estate and mining industries of China Merchants Bank have both risen sharply. According to the semi-annual report, due to policy regulation and credit risk exposure of some real estate companies, the non-performing loan rate of domestic companies’ real estate was 1.15%, an increase of 0.93 percentage points from the end of the previous year.
As of the end of June 2021, China Merchants Bank has a total of 643.768 billion yuan in domestic corporate real estate and broad-based exposures, an increase of 46.358 billion yuan from the end of the previous year. Among them, the balance of domestic corporate loans was 332.329 billion yuan, an increase of 20.899 billion yuan from the end of the previous year, accounting for 6.57% of the total loans and advances.
In this regard, China Merchants Bank stated in its semi-annual report that it will continue to adjust the structure of real estate customers and regional assets, focus on central cities and strategic customers, strengthen business risk monitoring and process management, steadily promote industry limit and customer limit management, and promote concentration supervision The indicators are gradually optimized to meet the standards.
Massive information, accurate interpretation, all in Sina Finance APP
Editor in charge: Pan Qiaochu
.