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.

渤海信托通过与中国领先的数字化B2B平台“找钢网”合作，将钢铁生产商和消费者聚集在一起，推出了一款信托产品，向钢铁购买者提供贷款，以实现该平台上的高效交易。该信托产品使得钢铁产业链上的9000多家公司获益，提高了钢铁行业的运转效率。

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.

渤海信托总裁马建军表示，公司已在制造业、基础设施、节能、环保、工业升级和其他实体经济领域投资超过3300亿元人民币（约合470亿美元）。

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.

马建军认为，信托公司可以通过灵活的投资工具提供定制服务，并借助先进的风险管理技术来防范金融风险，以不断支持实体经济发展。

本文转载自新华社11月30日报道