China Trust Industry Association: As of the end of the second quarter of this year, the scale of trust assets in China reached 27 trillion yuan, a year-on-year increase of 24.52%.

The data released by the China Trust Industry Association shows that as of the end of the second quarter of 2024, the scale of trust assets in China was 27 trillion yuan, an increase of 3.08 trillion yuan from the end of the fourth quarter of 2023 and an increase of 5.32 trillion yuan from the same period last year, with a year-on-year growth rate of 24.52%; the total scale of trust funds reached 19.95 trillion yuan, an increase of 2.58 trillion yuan from the end of the fourth quarter of 2023 and an increase of 4.25 trillion yuan from the same period in 2023, with a year-on-year growth of 27.10%. I. Steady growth in the scale of trust assets, continuous optimization of structure (1) Steady growth in the scale of trust assets Since the stabilization and rebound of trust assets in the second quarter of 2022, there has been nine consecutive quarters of year-on-year positive growth by the end of June 2024. As of the end of the second quarter of 2024, the balance of trust assets was 27 trillion yuan, an increase of 3.08 trillion yuan from the end of the fourth quarter of 2023 and an increase of 5.32 trillion yuan from the same period last year, with a year-on-year growth rate of 24.52%. (2) Gradual optimization of the structure of fund trust investments As of the end of the second quarter of 2024, the total scale of fund trust investments in the trust industry reached 19.95 trillion yuan, an increase of 2.58 trillion yuan from the end of the fourth quarter of 2023 and an increase of 4.25 trillion yuan from the same period in 2023, with a year-on-year growth of 27.10%. In terms of the structure of fund trust investments, the scale of trust funds invested in the securities market (including stocks, funds, bonds) totaled 8.34 trillion yuan, an increase of 1.74 trillion yuan from the end of the fourth quarter of 2023. This part of the funds accounted for 41.81% of the total fund trust scale, an increase of 3.28 trillion yuan compared to the same period in 2023, with a year-on-year increase of 64.89% and an increase in proportion of nearly 9%. The scale of trust funds invested in financial institutions was 2.96 trillion yuan, accounting for 14.83% of the total fund trust scale, an increase of 587.95 billion yuan from the end of the fourth quarter of 2023. Compared to the same period in 2023, the scale increased by approximately 765.57 billion yuan, a year-on-year growth of 34.93%, and an increase in proportion of 1.19%. The scale of trust funds invested in industrial and commercial enterprises was 3.87 trillion yuan, accounting for 19.39% of the total fund trust scale, an increase of 793.88 billion yuan from the end of the fourth quarter of 2023, with a decrease in proportion of 2.41%. Compared to the same period in 2023, the scale increased by 407.61 billion yuan, a year-on-year growth of 1.07%, and a decrease in proportion of 4.99%. Infrastructure investment in China showed signs of recovery in the first half of the year, growing by 5.4%. The scale of trust funds invested in basic industries was 1.63 trillion yuan, accounting for 8.19% of the total fund trust scale, an increase of 117.16 billion yuan from the end of the fourth quarter of 2023, with a slight decrease in proportion of 0.54%. Compared to the same period in 2023, the scale increased by 121.73 billion yuan, a year-on-year growth of 8.05%, and a decrease in proportion of 1.45%. In the first half of the year, real estate investment in China remained at a low level. As of the end of the second quarter of 2024, the scale of trust funds invested in real estate was 919.18 billion yuan, accounting for 4.61% of the total fund trust scale, a decrease of 54.68 billion yuan from the end of the fourth quarter of 2023, a decrease in proportion of 0.99%. Compared to the same period in 2023, the scale decreased by 129.74 billion yuan, a year-on-year decrease of 12.37%, and a decrease in proportion of 2.07%. (3) Continuous adjustment of trust fund utilization methods In terms of trust fund utilization methods, the proportion of trust loans continued to decline. As of the end of the second quarter of 2024, the scale of trust loans was 3.55 trillion yuan, accounting for 17.78% of the total fund trust scale, an increase of 223.60 billion yuan from the end of the fourth quarter of 2023, a decrease in proportion of 1.36%. Compared to the same period in 2023, the scale of trust loans increased by 170.16 billion yuan, a year-on-year growth of 5.04%, and a decrease in proportion of 3.74%. By the end of the second quarter of 2024, the scale of investment in trading financial assets in fund trusts reached 12.10 trillion yuan, accounting for 60.66%. Compared to the end of the fourth quarter of 2023, the scale increased by 1.66 trillion yuan, an increase in proportion of 0.56%; compared to the same period in 2023, the scale increased by 3.12 trillion yuan, with a year-on-year growth rate of 34.68%, and an increase in proportion of 3.42%. At the same time, trust companies are actively exploring diversified financial instruments such as long-term equity investments, debt investments, interbank placements, and repurchase agreements. II. Challenges facing trust company operations Compared to the same period in 2023, the scale of inherent assets has increased slightly. By the end of the second quarter of 2024, the scale of trust company inherent assets reached 898.73 billion yuan, an increase of 27.92 billion yuan from the end of the fourth quarter of 2023; compared to the same period in 2023, the scale increased by 206.33 billion yuan, a year-on-year growth of 2.35%. In terms of operating income and total profits, there was a significant decline compared to the same period in 2023. By the end of the second quarter of 2024, the industry achieved operating income of 33.53 billion yuan, a year-on-year decrease of 32.73%; total profits were 19.88 billion yuan, a year-on-year decrease of 40.63%. In terms of owner's equity, the overall scale increased slightly compared to the same period in 2023. By the end of the second quarter of 2024, the scale of trust company owner's equity reached 755.42 billion yuan, an increase of 69.0.7 billion yuan, an increase of 10.526 billion compared to the same period in 2023, with a year-on-year growth rate of 1.41%.Figure 7: Owner's Equity, Year-on-Year Growth Rate, and Month-on-Month Growth Rate of Trust Companies Data Source: Publicly released data from the China Trust Industry Association Unit: RMB (in hundred million yuan)