A storm triggered by a trust industry payment crisis has swept through listed companies, forcing them to re-examine the risk exposure that financial management may bring.

Since August, Xianheng International, Jinbo shares and Nandu Property have successively encountered defaults on the payment of Zhongrong Trust, causing great concern in the market. The Shanghai Stock Exchange has subsequently issued regulatory letters to Xianheng International and Jinbo shares.

As one of the main financial investment methods of listed companies, statistics show that since 2023, a total of 40 listed companies have subscribed for trust financial products close to 9.9 billion yuan, of which the largest amount is Salt Lake shares, and the subscription amount of a single company is 2.42 billion yuan. In addition, there are three listed companies financial investment only subscribed for trust products, of which Shuangcheng Pharmaceutical subscribed for three trust products, including the Jinbo shares "step on the thunder" products.

Trust payment storm swept

since August, three companies, xianheng international (605056.SH), jinbo shares (688598.SH) and nandu property (603506.SH), have announced the overdue payment of the subscribed trust. for a while, "stepping on thunder" trust financial management has aroused great concern in the market.

Among the six trust products announced by the three listed companies for overdue payment and default, four are Zhongrong International Trust Co., Ltd. (hereinafter referred to as "Zhongrong Trust") products, and the other two are Zheshang Jinhui Trust Co., Ltd. Trust products. The total purchase amount of the default trust products of the three listed companies is 0.153 billion yuan, all of which are investments of idle own funds.

It should be noted that according to the disclosure of Jinbo shares, the company purchased Zhongrong Trust-related products through Hengtian Wealth Investment Management Co., Ltd. (hereinafter referred to as "Hengtian Wealth"), and Hengtian Wealth is "Zhongzhi" One of the four major wealth companies, Zhongrong Trust is also considered to be one of the most important licensed financial institutions under the "Zhongzhi System.

According to information, Zhongrong Trust was established in 1987, formerly known as Harbin International Trust and Investment Company. At present, Jingwei Textile Machinery (000666.SZ), a subsidiary of China National Machinery Industry Corporation, holds 37.47 percent of the shares and is the largest shareholder. Zhongzhi Group ranks second with 32.99 percent of the shares.

As of December 31, 2022, Zhongrong Trust's own assets were approximately $30.418 billion, and the total size of the assets entrusted to it by the Company and its subsidiaries was approximately $785.709 billion. Among them, the company's headquarters has 1633 surviving trust plans, managing trust assets of 629.349 billion billion yuan, accounting for about 80.1 percent.

according to incomplete statistics, jiabiyou (688089.SH) disclosed in its 2022 annual report that the company purchased "Zhongrong-Longsheng No.1 trust interest" in April, with an investment amount of 50 million yuan, which had been fully recovered by the end of last year. * ST People's Control (000416.SZ) also mentioned in the first quarter of 2023 that the company's rollover investment "Zhongrong-Convergence Gold No.1 Monetary Fund Collective Fund Trust Plan" with an investment amount of 0.1 billion yuan.

on July 3, Amway shares (300218.SZ) announced to subscribe for the "zhongrong-yuanrong No.1" trust product under zhongrong trust with 20 million yuan of idle self-owned funds. together with the 20 million subscribed by the company in may, the total investment amount reached 40 million yuan, which is expected to expire on November 8 and December 27 this year.

as of July 6, shimmer shares (002801.SZ) also have 0.15 billion yuan of "zhongrong-convergent gold 1 monetary fund collective fund trust plan" that has not yet expired, while the balance of the company's wealth management products from zhongrong is close to 0.5 billion yuan.

Compared with other bank wealth management products, trust wealth management often has a higher rate of return, but at the same time investors also need to take higher risks. About 10.69 percent of Zhongrong Trust's fiduciary scale involves real estate projects, and the company's products have already stepped on real estate developers such as Evergrande.

After the successive defaults of Zhongrong Trust products, Everbright Trust, Minmetals Trust and AVIC Trust issued statements on the same day, saying that the company was operating normally and there was no product suspension. Listed companies also have a number of enterprises rushed to clear the relationship, such as Huachen equipment in the interactive platform said that "the company did not buy in the plant of financial management".

it is worth noting that on April 4 this year, Jihua group (603980.SH) disclosed an announcement involving overdue payment of Zhongrong trust products. the company subscribed to Zhongrong-jida no 11 collective fund trust plan and Zhongrong-fengteng no 83 collective fund trust plan 10 million yuan and 30 million yuan respectively with its own funds.

Since the beginning of this year, a number of trust wealth management products invested by Jihua Group have encountered overdue payments, including China Construction Investment Trust, Lujiazui Trust and other trust products. In addition, Hengyin Technology (603106.SH) also encountered the overdue payment of products under the National Trust on April 11.

40 listed companies hold 9.9 billion yuan trust wealth management

When the funds raised for special projects cannot be put into use in a short period of time or the cash flow of the company is relatively abundant, listed companies often like to increase the rate of return of these idle funds by purchasing wealth management products. According to Wind statistics, Most companies still prefer more stable bank wealth management or structured deposits.

on the whole, since January 1, 2023, a total of 794 A- share listed companies have subscribed for wealth management products, with a total subscription number of 8006, and the total subscription amount of all wealth management products has reached about 563.453 billion yuan.

among them, the listed company with the highest amount of subscription for wealth management products is beitani. the company currently holds 29 wealth management products, with a total investment of 31.9 billion yuan. Among them, including the subscription of 10.27 billion yuan of structured deposits, 0.503 billion yuan of bank wealth management products, 21.07 billion yuan of securities company wealth management products and 60 million trust products.

Beitani landed on the Shenzhen Stock Exchange GEM in 2021, the company mainly to "Winona" brand as the core of cosmetics sales, 2022 annual operating income of about 5.014 billion yuan, the net profit attributable to the mother of about 1.051 billion yuan. Among them, the "profit and loss of entrusting others to invest or manage assets" is about 78.0079 million yuan, accounting for about 7.42 per cent of the total net profit.

as of August 16, the total amount of investment and wealth management of two listed companies this year has exceeded 10 billion yuan. except for beitani, the total amount of wealth management products subscribed by yiwei lithium energy this year has reached 14.66 billion yuan. Last year, a total of 8 listed companies subscribed for more than 10 billion yuan, with a maximum of 26.393 billion yuan.

the minimum amount of wealth management products subscribed so far this year is Taiyong Long March, and the company has subscribed for a structured deposit of 7 million yuan.

In fact, listed companies still prefer lower-risk investments such as structured deposits in the subscription of wealth management products.

of the 794 listed companies that have subscribed for wealth management products this year, 639 have subscribed for structured deposits, with a total subscription amount of 378.009 billion billion yuan, accounting for about 67.09 per cent of all wealth management investments. Of these, 339 listed companies have subscribed only for structured deposits.

as of August 16, the total amount of financial products invested by listed companies in securities companies was about 53.653 billion yuan, second only to structured deposits.

In addition, bank-related deposits, time deposits, call deposits and bank wealth management products also have relatively low risks and can be used flexibly for listed companies. at present, the subscription amounts of various wealth management products are 34.814 billion yuan, 15.625 billion yuan, 18.585 billion yuan and 42.178 billion yuan respectively.

In contrast, the more risky types of wealth management products will absorb a smaller amount of funds.

as of August 16, the types of wealth management products with the least total amount subscribed by listed companies are trust and investment company wealth management, with a total amount of 9.302 billion yuan and 9.886 billion yuan respectively. only 40 of the 794 listed companies have subscribed for trust products.

among the 794 listed companies holding wealth management products, 40 companies hold trust products and purchase the largest number of salt lake shares. the total amount of trust wealth management products subscribed reached 2.42 billion yuan, accounting for 26.02 of the total amount of trust subscribed by all listed companies.

In the financial structure of Salt Lake shares, the proportion of trust investment is about 46.99. In addition, the company also subscribed for 0.6 billion yuan of bank wealth management products, 1.83 billion yuan of securities company wealth management products and 0.3 billion yuan of investment company wealth management products, and all subscribed with its own funds.

According to the 2022 annual report data, Salt Lake's investment income from holding trading financial assets last year was about 4.511 million yuan. For the whole of last year, the Company's subscriptions to bank finance, brokerage finance and trust finance were $2.2 billion, $0.3 billion and $1 billion, respectively.

it is worth mentioning that the three listed companies of Crane, Bowen Technology and Shuangcheng Pharmaceutical only invest in trust and financial management, with investment amounts of 0.4 billion yuan, 0.13 billion yuan and 60 million yuan respectively, of which Crane's investment funds come entirely from self-raised funds.

During the same period last year, the total amount of all types of wealth management products subscribed by A- share listed companies was about 920.6 billion yuan, of which the total amount of subscription for trust products was about 11.544 billion yuan. In contrast, this year's listed companies have reduced the scale of investment in wealth management products to a certain extent, and the total investment has dropped by about 38.8 compared with the same period last year.

60% of listed companies only raise funds for financial management

Listed companies subscribe to wealth management products generally have their own funds and self-financing funds, that is, the balance of daily working capital or fund-raising projects temporarily idle funds.

Among the 794 listed companies within the statistical scope, 481 companies only come from self-raised funds for financial investment, while 159 companies only use their own funds for financial investment.

In the logic of investment, risk and return often go hand in hand, as mentioned earlier, Salt Lake shares, which have subscribed for 26% of the total amount of trust subscriptions for all listed companies, are the companies with the highest expected return on average, reaching about 13.44 percent, and nearly half of the company's wealth management funds are invested in trust products.

On the other hand, Shuangcheng Pharmaceutical has the highest average expected minimum yield, while the company has invested all of its own funds in trust products with 60 million yuan.

it should be noted that the two trust products subscribed by shuangcheng pharmaceutical this year are all issued by Zhongrong trust. the specific product is "Zhongrong-Longsheng No.1 collective fund trust plan". the starting date is January 9 and April 18 respectively. this product is one of the trust products in which jinbo shares disclose overdue payment and default.

on August 14, shuangcheng pharmaceutical said in response to investors' questions on the interactive platform that "the 30 million Zhongrong trust products subscribed by the company in January this year will receive the principal and interest as agreed in the contract on July 10, 2023".

Last year, the drugThe industry has also invested most of its wealth management funds in trust products, with a total subscription amount of 0.218 billion yuan for the whole year. The amount of securities firm wealth management, bank wealth management and trust wealth management is 30 million yuan, 87.3583 million yuan and 0.101 billion yuan respectively. The five trust products held are all products issued by Zhongrong Trust. In the end, Shuangcheng Pharmaceutical achieved a financial income of about 4.6337 million yuan.

in fact, the operation of shuangcheng pharmaceutical itself was not good last year. the company lost a large amount of 36.88 million yuan after deducting non-net profit. finally, the net profit of the parent company turned around by virtue of the income from the sale of assets, government subsidies and investment and financial management, and the final profit was about 9.01 million yuan.

In addition, listed companies that are themselves in A- shares also love to "speculate in stocks" and buy funds and bonds.

According to Wind statistics, as of December 31, 2022, 811 listed companies held securities-related assets, excluding securities firms, banks, insurance and other capital market services, monetary and financial services companies, and the remaining 788 listed companies held securities assets.

Among them, Ningbo Port has the highest investment amount, with a total investment of about 12.675 billion yuan. The company holds 13 stocks, funds, financial bonds and other securities assets. At the same time, China Railway holds the largest number of securities, reaching 58.