China’s Trust Sector Saw over 13 Billion Yuan in Capital Raising in 2022

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Companies in China’s trust sector collectively increased their capital by at least 13 billion yuan in 2022, extending a steady decline in the capital-raising sum over the past several years.

According to figures from Caijing, at least nine Chinese trust companies successfully held capital raisings in 2022, including Zhejin Trust (1.699 billion yuan), China Credit Trust (3.078 billion yuan), Guotong Trust (2.4 billion. yuan), Zhongrong Trust (2.668 billion yuan), Xiamen Trust (410 million yuan), Lujiazui Trust (1.4 billion yuan) and Huachen Trust (126 million yuan).

In December, Shanguo Investment Trust increased its registered capital from 3.965 billion yuan to 5.114 billion yuan, while Huabao Trust announced that it had obtained regulatory approval for an increase in its registered capital from 4.744 billion yuan to 5.004 billion yuan.

The figure for 2022 extends an overall pattern of decline in capital raising by the Chinese trust sector, which previously posted a drop from 21.685 billion yuan in 2018 to 15.145 billion yuan in 2021.

“With comparatively heavy pressure, tightening of regulatory policy and intensifying risk exposure, shoring up capital strength is the precondition and keystone for shifts in the development of trust companies,” said Zeng Gang (曾刚), chair of the Shanghai Institution for Finance and Development.

“This will help to raise the ability to resist risk, and better achieve high-quality transition and upgrade.”