By Chang Yanjun
Till the end of first quarter this year, the trust asset scale keeps its rapid growth, and the gradually low real estate trust has also risen about 12 percent compared with that of the last quarter.
"Currently, the rate of return on real estate trust is relatively higher than that of other fields, trust companies tend to attract customers by issuing real estate trust, which may lead to the continuous growth in the stock of real estate trust in the future, but its proportion is indeterminable." said Fan Jie, the trust researcher of CNBENE.
Substantial increase in scale
The macro-control of real estate trust has brought down the development of real estate trust in recent years. The allocated proportion of trust companies' asset trust in the field of real estate trust has declined to 9.85 percent in 2012 from 14.95 percent in 2010 (9.40 percent at the end of first quarter this year). In contrast, there has been a remarkable increase of RMB770.179 billion yuan in the scale of real estate trust at the end of first quarter this year, with a year-on-year growth of 12.18 percent; however, if compared with that of fourth quarter in 2012, the increased proportion is 11.93 percent, instead of previous small growth or even negative growth.
"From the longitudinal view, the real estate trust is on the increase; but from the horizontal analysis, which is based on the proportion, the growth of real estate trust is lower than that of other fields." said Fan Jie.
The great increase in the scale of real estate trust of the first quarter in this year may be related to the recovery of real estate market, said Zhou Xiaoming, the expert and director of China Trustee Association, who represented his views in the development evaluation of trust business of the first quarter. The new pattern urbanization strategies also offer new opportunities for trust companies to develop real estate trust services.
Among the strategies, there are two articles in "New five-policies (the policies aiming to strengthen the control of real estate market)" which are commonly considered to be beneficial to the development of real estate. "Firstly, a new round of land rush has been caused by the increase of general commercial housing and land supply, which provides the trust companies with new market space; secondly, the 20 percent income tax paid by second-hand housing transaction, which is good for the transaction of primary market in real estate, an active primary market is beneficial to the risk control of trust companies." said Zhou Xiaoming.
Overall risk is controllable
The risk events exposed previously have already made people feel nervous for the risk of real estate trust. Behind the scale growth, what kinds of risk are there in the real estate trust?
"It shall say that there is no systematic risk in present real estate trust market. If any, it may attribute to the asset backflow of real estate investors who are regarded as the financiers, which is a problem about liquidity, as well as the operation risk of trust companies, which means that there may be loose risk control in the project review stage." said Fan Jie, the overall risk of real estate trust is controllable while there may be problems in single project.
A person from trust companies said that, after the adjustment and control, real estate enterprises as well as trust companies have profound the understanding of potential risk in real estate industry. Through the integration of real estate industry, the overall strength of the enterprises stayed behind is stronger than before, the risk control measures of real estate trust are also becoming more complete. Moreover, based on the overall development of financial market and the fine combination of different financial products, the capacity of the market itself to defuse the financial risk of real estate has also been improved." Additionally, the supervision department pays more attention to the settlement of potential risk in real estate trust as well.
"The current operating mode and risk control measures of real estate trust are quite mature." said Fan Jie, for example, mortgage and pledge have multiple categories such as land use rights pledge, house property mortgage, and real estate mortgage, and house property mortgage is conducted by 40 percent of the house selling price. See from the time limit, the real estate trust products have time limit of 1~3 years, thus 60 percent house price drop is less possible in three years. "The key point lies in that whether the risk control measures of trust companies have been put in place. What's more, the trust companies shall not only do their duty before the loan, and they shall also follow up properly during the mortgage. It's insufficient to just care about the returned money, aspects such as project process and asset embezzlement shall also be noticed well.
See from the development trend of real estate, traditional real estate trust enterprises which aim to the corporate financing of real estate industry and the pursuing of high reward may be difficult to sustain, real estate trust will undertake the reform from aspects of product innovation, benefit level, investment fields, application mode of funds, etc. to seek for the development opportunities in the future, said the above-mentioned personnel from trust companies.
