Industry News | Just now, the bankruptcy of Sichuan Trust was approved!

On April 1st, the Sichuan Regulatory Bureau of the State Administration for Financial Supervision and Administration issued the "Reply on Agreeing to the Bankruptcy of Sichuan Trust Co., Ltd." (Chuanjin Jianfu [2024] No. 91), agreeing to Sichuan Trust entering bankruptcy proceedings in accordance with the law.

Bankruptcy application approved

According to the approval documents, in accordance with relevant regulations such as the Implementation Measures for Administrative Licensing Matters of Trust Companies under the China Banking and Insurance Regulatory Commission and authorized by the State Administration of Financial Supervision and Administration, after review, it is agreed that Sichuan Trust Co., Ltd. will enter bankruptcy proceedings in accordance with the law.

The Sichuan Regulatory Bureau of the State Administration for Financial Supervision and Administration stated that Sichuan Trust should strictly follow the requirements of relevant laws and regulations to carry out follow-up work, and timely report any major situations.

Sichuan Trust also released a risk disposal progress announcement on its official website that evening, stating that the company will strictly follow the requirements of relevant laws and regulations to accelerate the subsequent bankruptcy reorganization work.

According to the data, Sichuan Trust was officially established on November 28, 2010. It was a trust company restructured and established based on the reorganization of Sichuan Trust Investment Company and Sichuan Construction Trust Investment Company, the merger of some high-quality assets, and the introduction of strategic investors. The registered capital is 3.5 billion yuan.

According to Tianyancha, the company currently has 10 shareholders, among which the top three shareholders are Sichuan Hongda (Group) Co., Ltd., Zhonghai Trust, and Sichuan Hongda Co., Ltd., with shareholding ratios of 32.04%, 30.25%, and 22.16%, respectively.

Continuous promotion of risk disposal work

It is understood that in the early stages of its establishment, Sichuan Trust developed rapidly and achieved a revenue of 4.21 billion yuan and a net profit of 1.59 billion yuan in 2015, reaching a new high. However, performance has since declined, and since 2020, some of the company's TOT (Trust Of Trusts) products have been overdue, with a risk gap rapidly rising to 25.2 billion yuan.

In December 2020, the Sichuan Banking and Insurance Regulatory Bureau announced that it had discovered that Sichuan Trust violated the rules of prudent operation by illegally using some inherent loans or trust funds for relevant shareholders and their affiliates. After being ordered by regulatory authorities to rectify the situation, the relevant shareholders refused to return the illegally occupied funds. Mandatory regulatory measures have been taken against some shareholders in accordance with relevant regulations, and a working group has been dispatched in collaboration with local governments.

In March 2021, the Sichuan Banking and Insurance Regulatory Bureau issued the largest penalty in trust history for 13 illegal and irregular facts of Sichuan Trust, imposing a total fine of 34.9 million yuan. In addition, 15 relevant responsible persons have been subject to administrative penalties such as prohibiting them from working in the banking industry for a certain period of time, revoking the qualifications of directors and executives for a certain period of time, issuing warnings and fines, totaling 6.72 million yuan.

In July last year, Sichuan Trust announced that with the guidance and support of all parties, key progress had been made in the risk disposal work of Sichuan Trust. The relevant intermediary institutions have completed special due diligence and evaluation, and updated the actual asset base. At present, the risk disposal plan has been formed and submitted according to the procedures.

In December of the same year, Sichuan Trust announced that Sichuan Tianfu Chunxiao Enterprise Management Co., Ltd. (hereinafter referred to as "Chunxiao") would acquire the qualified trust beneficiary rights held by Sichuan Trust's natural person investors and announce the redemption plan.

In February this year, Sichuan Trust announced that as of February 26th, the number of natural person investors who signed trust beneficiary rights transfer contracts with Chunxiao reached 8055, with an overall signing rate of 95.02%.

The above content is sourced from China Fund News