Financial Services Association, April 19 (Reporter Guo Zishuo) On April 1**** An Trust updated the latest developments in the “Funing 615 Trust Plan”. Ping An Trust said that the company's lawsuit against Zhengrong's various repurchasers has obtained a successful judgment in the first instance in the share repurchase case. Ten days ago, Ping An Trust confirmed the extension of the Funing 615 Trust Plan.

Recently, many trust plans have been affected by a wave of overdue payments. In addition to Ping An Trust, it was recently reported that the “Kunming Land Investment Equity Benefit Pooled Fund Trust Plan” managed by National Trust issued an interim announcement. The counterparty, Kunming Land Development, Investment and Management Co., Ltd. (hereinafter referred to as Kunming Land Investment), is struggling with funds and is applying for an extension.

On April 19, the Financial Services Association reporter learned from people related to National Trust that this situation is true. Currently, the “National Trust · Kunming Land Investment Equity Benefit Pooled Fund Trust Plan” project has been postponed as a whole. Companies are allowed to make early repayments until April 15, 2025. The above sources revealed that this series of loans has been reported to the debt list of the State Council's financing platform, and is currently relatively stable overall.

Looking back, the bottom layer of trust plans recently announced to defer payment is concentrated on political credit and real estate products, which is relatively consistent with the trend of the first quarter. A Financial Services Association reporter learned today from the Yongyi Financial Trust Research Institute that in the first quarter trust default situation, the real estate industry is still the main area of default.

According to incomplete statistics from public data, as of the end of the first quarter of 2024, there were 31 trust default products, involving an amount of 20.03 billion yuan. The amount of non-compliance in real estate trust projects reached 14.223 billion yuan, accounting for 70.31%. The amount of default capital for basic industrial trust projects was 1,309 billion yuan, accounting for less than 7%.

Head Trust announced the progress of the extension

Ping An Trust Funing No. 615 Trust Plan is a real estate equity investment product. Trust funds are invested in a residential project in Xiamen through equity investment. Due to the continued decline in the real estate market, the project party, Zhengrong Company, defaulted, and the project failed to exit as scheduled on March 29, 2024.

Ping An Trust emphasized that the assets of the trust plan and the assets inherent in the trust company and between different trust plans are independent and risk-isolated, so the extension of the Funing No. 615 Trust Plan will not affect the normal operation of the company.

Ping An Trust said it has achieved strict supervision of lower-level project licenses and bank accounts, and continues to follow up on the development, operation, sales and profit distribution of lower-level projects, guarantee project construction, strengthen marketing and promotion efforts, speed up project sales, improve capital return efficiency, and accelerate cash recovery.

Multiple government and credit trust plans have defaulted

A number of government and credit trusts have been overpaid. According to the agreement, the counterparty of the “National Trust · Kunming Land Investment Equity Benefit Pooled Fund Trust Plan” shall pay the basic purchase amount of 55,400,000.00 yuan and the purchase premium of 350,036.93 yuan on April 15, 2024.

According to the National Trust, in line with the principle of maximizing beneficiaries' interests, the company has communicated and negotiated many times with counterparties and other relevant parties on repayment matters under the “Equity Beneficiary Transfer Agreement” in advance and actively promoted repayment matters.

Coincidentally, Minmetals Capital (600390.SH) also recently announced that the three trust products “Hengxin Guoxing No. 636 - Kunming Capital Investment Pooled Fund Trust Plan”, “Hengxin Guoxing No. 657 - Yingsheng No. 51 Pooled Fund Trust Plan” and “Minmetals Trust - Hengxin Guoxing No. 659 - Xindu No. 1 Pooled Fund Trust Plan”, which are managed by the holding subsidiary Minmetals International Trust Co., Ltd. (hereinafter referred to as “Minmetals Trust”), have overdue payments. However, the borrowers and guarantors for the above three overdue products are all urban investment platforms in Kunming, Yunnan Province, with a total amount of about 650 million yuan.

According to Minmetals Trust, as the trustee manager of the above three trust products, it is entrusted by investors to manage related assets and bears fiduciary management responsibilities. Minmetals Trust will continue to maintain communication and negotiations with financiers, make continuous efforts to advance collection work, urge relevant parties to raise funds as soon as possible to repay outstanding payments as agreed, and urge guarantors and others to fulfill their corresponding guarantee responsibilities as soon as possible.

Minmetals Capital added that the overdue payment situation of the above three trust products will not have a significant adverse impact on the company's financial data. Currently, the company is operating normally and operating well.

Yu Zhi, a researcher at the Yonyi Financial Trust Research Institute, told the Financial Federation reporter: “The risk of real estate trust projects is still high. The credit risk of housing enterprises themselves is relatively high, and subsequent disposal is difficult. Political and credit projects have problems in some high-risk regions, but in the general environment of debt conversion, the risks are manageable and are not expected to last long.”