On December 31, 2021, the Beijing Banking Insurance Regulatory Bureau announced 7 administrative penalty information disclosure forms for the end of 2021. Among them, in response to China Foreign Economic and Trade Trust Co., Ltd. (hereinafter referred to as “foreign trade trusts”), the Beijing Banking Insurance Regulatory Bureau ordered the foreign trade trust to be corrected and forfeited 10.8 million yuan.
Specifically, the main illegal facts of foreign trade trusts are: 1. Accepting and using “capital increases” in the form of debt in violation of regulations before regulatory approval of capital increases; 2. Failure to identify commercial banks' personal finance fund subscription rights to subordinate beneficiaries; 3. The number of qualified investors broke through the “new asset management regulations” requirements; 4. Employees pooled funds from others to buy trust plans, and some were pooled to subscribe less than 300,000 yuan; 5. Using accounts receivable acquisitions to supplement working capital loans to real estate companies in disguise; 6. The project capital review was inadequate, and the project capital was insufficient. Providing financing; 7 ... Loan use review is not in place, and trust funds are used to replace investment funds paid in the land concession fund in the early stages; 8. Management of loan use in real estate trust plans is inadequate; 9. Management of loan use is inadequate, and some loan funds flow into the stock market and housing market; 10. Personal loan contracts and rate management are inadequate; 11. Mutual trust property transactions between different pooled fund trust plans are carried out in disguise through cooperative institutions.
Meanwhile, the Beijing Banking Insurance Regulatory Bureau issued a warning to the company's client Zhao and fined 100,000 yuan; gave a warning and fine of 100,000 yuan to Wang Xiaoli; gave a warning and fine of 50,000 yuan to Zhou Li; and gave Li Shaoyu a warning and a fine of 50,000 yuan.
Judging from the amount of fines, this is the third largest number of fines issued by the supervisory authorities in the trust industry in recent years, after Sichuan Trust and Anxin Trust.
On March 12, 2021, penalty information published on the official website of the Sichuan Banking Insurance Regulatory Bureau revealed that Sichuan Trust was fined 34.9 million yuan for 13 illegal facts including “serious violation of prudent operation rules”. On April 3, 2020, administrative penalty information disclosed by the Shanghai Banking Insurance Regulatory Bureau showed that Anxin Trust was ordered to make corrections and fined a total of 14 million yuan due to multiple illegal facts. The Foreign Trade Trust is the third trust company to be fined more than 10 million dollars.
It is worth noting that on July 21, 2020, according to the Referee's Documents Network, Foreign Trade Trust was found by the court to be suspected of using “routine loans” due to “the borrower's failure to return the 550,000 yuan on time and disposed of the borrower's house of 1.1 million yuan”.
According to Foreign Trade Trust's 2020 annual report, Foreign Trade Trust achieved revenue of 3,089 billion yuan, an increase of 10.76% year on year; net profit recorded 1.42 billion yuan, a year-on-year decrease of 20.73%. During the reporting period, operating expenses rose from 442 million yuan to 1,249 billion yuan, an increase of more than 1.8 times. Furthermore, in 2020, its asset impairment losses rose sharply. During the period, it experienced asset impairment losses of 661 million yuan, and losses increased nearly fivefold over the same period last year. (WEMONEY Laboratory Record/Editor)