What Is a Community Development Trust?

A trust is a trustee's trust in the trustee to entrust its property rights to the trustee, and the trustee will manage and punish the beneficiary's interests or specific purposes in his own name. ^[1]

[xìn tu]

Trust is trust. The trust business is that the trustee transfers the property rights to the trustee (natural or legal person) for the benefit of himself or a third party (that is, the beneficiary) in accordance with the provisions of the contract or will, Possession, management, use of trust property, and disposal of its proceeds.

First clean-up and rectification: In 1982, the State Council decided to clean up the trust industry in response to the excessive scale of infrastructure in various regions and affect the balance of credit income and expenditure. Investment in fixed assets is planned to be comprehensively balanced.

Second clean-up and rectification: In 1985, the State Council requested to stop handling trust loans and trust investment businesses in response to the country s out-of-control credit and excessive currency issuance in 1984. The source of funding is limited.

Third cleanup and rectification: In 1988, the Central Committee of the Communist Party of China and the State Council issued documents to clean up and rectify trust and investment companies. In October of the same year, the People's Bank of China began to rectify trust and investment companies. In the second year, the State Council carried out further rectification of trust and investment companies in response to the rapid development of various trust and investment companies (more than 1,000 at the peak) and chaotic management.

Fourth clean-up and rectification: In 1993, the State Council began to comprehensively clean up trust and investment companies approved by the People's Bank of China at all levels in order to manage the chaotic problems in the financial system; Examine and register, and require state-owned commercial banks to decouple from the trust and investment companies they run.

Fifth cleanup and rectification: In 1999, in order to prevent and mitigate financial risks, the head office of the People's Bank of China decided to carry out a comprehensive rectification and withdrawal of 239 trust and investment companies. The principle of "supervision" re-regulates the scope of trust investment businesses, separates the banking and securities industries from the trust industry, and formulates strict conditions for the establishment of trust and investment companies.

The sixth clean-up and rectification: from 2007, the implementation of the "trust new policy", reducing the inherent business of trust companies, highlighting the main business of the trust, stipulating that trust companies must not carry out other debt businesses other than interbank borrowing, and inherent property must not Industrial Investment. ^[2]