Changjiang Business Daily News ● Li Jing, public welfare reporter of Changjiang Business Daily
After the new asset management regulations, the trust industry entered an important time point of transformation. The collision of trust transformation with green development and ESG concept has brought industrial opportunities, helped the green and low-carbon transformation of the economy, realized the greening of its own business structure, and developed sustainable finance into the industry consensus.
At the 2022 Caixin Summer Summit held recently, Minmetals Trust released the report "ESG Development Road of China's Trust Industry". The report summarizes the practice of ESG investment in the field of global and domestic asset management, combs the development history of ESG in China's trust industry in detail, and looks forward to the development trend of ESG in the trust industry.
In recent years, in terms of green practice, the trust industry not only provides direct financial support for green enterprises, but also focuses on green agriculture, ecological restoration and other aspects through flexible and innovative transaction structure across various financial markets. Under the trend of "financial charity", charitable trust is also becoming a bridge connecting the financial industry and public welfare undertakings, and gradually becoming an important part of public charity in China.
ESG Chengxin Trust's breakthrough in transformation
Compared with other financial institutions, trust has natural institutional advantages and cross market asset allocation advantages.
The report points out that the trust industry focuses on the fiduciary responsibility of "being entrusted and managing money on behalf of others". On the one hand, the trust industry needs to constantly practice its own ESG development. On the other hand, it is necessary to continuously develop ESG's investment capacity, including in equity, debt, open market securities and other investment fields, to better serve the real economy and build a modern capital market with Chinese characteristics.
The report believes that under the general trend of trust industry transformation, developing net worth trust, improving active management level, and investing in ESG through TOF and other products are important ways to build industry competitive advantage. On the one hand, the trust industry can refer to the experience accumulated by public funds in the field of ESG investment, and can also directly invest in ESG theme public funds.
In addition, public funds, banks and the securities industry have all joined the list of issuers of ESG index in China's capital market. The design of ESG investment index with the characteristics of the trust industry will release the insight and ability of the trust industry to practice ESG to the whole market through an open and transparent index to provide performance benchmarks and investment targets for the asset management industry. It is also an important link for the trust industry to develop ESG and conduct ESG investment.
It is understood that charitable trust, as an important platform for Minmetals Trust to practice social public welfare, has become an important force to achieve joint construction, prosperity and sharing of charitable public welfare undertakings in the new era. By the end of 2021, Minmetals Trust had established 42 charitable trusts in total, with a total scale of 71.78 million yuan, and its business development was at the forefront of the industry.
In 2021, the "Sanjiangyuan Series Charity Trust" launched by Minmetals Trust won the 11th "China Charity Award". Through charitable trust, the company donated a total of 20.41 million yuan to foreign countries throughout the year, supporting charitable projects including the support for needy students from Xixia High School in Henan Province, industrial poverty alleviation and education poverty alleviation projects in Lintao County and Xihe County in Gansu Province, and rural revitalization projects in Liuzhi Special District in Guizhou Province. In addition, Minmetals Trust continued to explore and innovate, and established the first domestic charitable trust focusing on Alzheimer's disease - "Never forget charitable trust".
In green practice, Minmetals Trust not only provides direct financial support for green enterprises, but also provides more abundant financial services for green industries and green enterprises at different stages of development. In 2021, a total of 38 Minmetals Trust green trust projects will continue, with a total scale of 9.6 billion yuan, up 13% year on year.
"ESG is the booster of high-quality economic development and the transformation and development of the trust industry Power source It is a pilot field for regulatory policies to be gradually standardized. " The person in charge of the company said that, standing in the strategic opportunity period of the transformation of the trust industry and the integration of the development of ESG, he will continue to emancipate his mind, keep pace with the times, and strive to promote innovation in investment philosophy, system innovation, and scientific and technological innovation, so as to contribute to accelerating the formation of a stronger, green, and healthy financial system in China.
Qi Jianming, secretary of the Party Committee and full-time vice president (executive) of China Trust Industry Association, said that China Trust Industry Association actively implements the new development concept of innovation, coordination, green, openness and sharing, and gives full play to the advantages of the trust system in the process of building a new development pattern. The market investment opportunities generated by the "dual carbon" goal have brought opportunities and challenges to the transformation and development of the trust industry, and ESG has also become a breakthrough point for the trust industry to respond positively.
Industry insiders believe that the ESG concept is highly integrated with the national strategy of high-quality development and sustainable development and the concept of macroeconomic development, and with the guidance and promotion of the "double carbon" strategy, ESG investment has rapidly completed the transformation from foreign products to independent development in China. With the implementation of new regulations on asset management, as an important component of asset management and finance, the trust industry can take advantage of the situation because its own system and mechanism are more flexible and market-oriented than other licensed financial institutions.
Trust industry transformation Charity trust develops rapidly
On July 21, the China Trust Industry Association announced that it is the mission of the trust industry to give full play to the functions of the trust system and serve economic and social development. In the first year of the 14th Five Year Plan, the trust industry will adhere to the principle of comprehensive social responsibility, carry forward the past and open up the future, promote the construction of trust culture, strengthen investor education, consolidate the achievements of poverty alleviation, help rural revitalization, practice the new development concept, and serve the new era of socialism with Chinese characteristics.
Public welfare and charitable trust is an important part of China's philanthropy. The trust industry can give play to the power conversion function of trust and the advantages of flexibility in trust product design, respond to people's new and diversified needs for a better life, and enhance people's sense of gain, happiness, and security in production and life; In terms of supporting the dual carbon goals, developing green trust business is an important direction for the transformation and development of the trust industry. The trust industry should combine its own development orientation and resource endowment, adhere to the bottom line of risk prevention and control, incorporate the ESG concept into the whole process of business decision-making and risk management, and explore the development path of differentiated green trust.
On May 20 this year, the "Yuan Longping Charity Trust" managed by Caixin Trust, a subsidiary of Hunan Caixin Financial Holding Group, was officially established, which became the starting point for the group to boost the development of science and technology with public welfare, and also the breakthrough and innovation of Hunan financial industry in this field.
As the first charitable trust fund set up by state-owned enterprises in Hunan Province, Caixin charitable trust property and its income are all used to support science and technology, environmental protection, rural revitalization, financial consumer protection, etc. At the same time, Yuan Longping Foundation, Caixin Financial Holding and Agricultural Bank of Hunan also signed a science and technology commonweal cooperation framework agreement. The three parties will give full play to their professional advantages and resource endowments, better form a commonweal force, and go all out to promote the "finance+commonweal+technology" model to help science and technology development.
The industry pointed out that the establishment of Yuan Longping Charitable Trust has a strong demonstration and driving significance. For the trustee of this charitable trust, Caixin Trust, it is a milestone event to promote transformation and kinetic energy conversion. Compared with traditional public trust, scientific and technological public welfare gives consideration to the duality of public welfare and science and technology. It can not only adjust income through three distributions of scientific and technological public welfare to promote the realization of common prosperity, but also help scientific and technological development, improve labor productivity, promote high-quality economic development, and open up broad space for public welfare to promote high-quality economic development.
In recent years, in addition to traditional charity organizations, financial institutions represented by trust companies have become an important force. Different from traditional trust business, charitable trust reflects the internal requirements of trust institutions to assume social responsibility and actively practice social public welfare, requiring practitioners to take public welfare and philanthropy concepts into their hearts and integrate them into their own culture. For this reason, more and more trust companies have begun to focus on creating professional, characteristic and brand charitable trust projects.
Data shows that in the first quarter of 2022, there will be 50 newly registered charitable trusts in China, with a year-on-year growth of 117.39%; The property scale was 119.2129 million yuan, up 154.36% year on year. Among them, there are 7 orders at the level of 10000 yuan, 24 orders at the level of 100000 yuan, 16 orders at the level of million yuan, and 3 orders at the level of 10 million yuan.
According to the filing information of Charity China, as of July 21, there were 903 registered charitable trusts nationwide, with a total property size of 4.189 billion yuan.
Experts believe that charitable trust, as a financial tool, is not only an important direction for the transformation of the trust industry, but also an important way to promote the third income distribution. For the trust industry and society, the development of charitable trusts reflects that under the goal of common prosperity, people, especially high net worth people, are undergoing profound changes in their wealth and charity views. They hope to use charitable trusts and other tools to participate in social welfare undertakings and realize social values while realizing family wealth management through trust tools.
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Editor in charge: Ma Qing
