Capital Trust Case Studies

Trust funds set plan is a new thing in China in recent years. It's mainly from Hong Kong and some countries in Europe and America. It entered China from that time on. China's ordinary investors, securities companies and government agencies have a tremendous enthusiasm. Experts are debating on the theory of the real estate trust in China; how can the trust funds set plans coordinate with China's legal environment; in practice, with the dream of getting rich, people could no longer sit still. They take the lead in the real estate trust in China's approach. This attempt has successes and failures. The author go over the last few years' trust case, he found a number of common characteristics. The writer selects Chongqing Xinhua investment trust funds set plan as a blueprint for the analysis of the case.The first part is the case introduction. The trust plan sets client based on the trust of trustees, voluntarily entrusted their legitimate funds to the trustee for the trust funds set operations plan. The fund is used for the Jiulongpo District of Chongqing Municipality's terminal building and transformation of the old city. Trust contracts can't exceed 200 shares, the amount of a single contract for RMB 10,000 aneuploid.The second part is the analysis of the case dispute. The first is the trust funds set of legal risk, which face the greatest risk is the legal subject of the law guarantees. The Jiulongpo District Finance Bureau and Land Regulation Centre of state-owned serve as a guarantor of identity. Second was followed by the trust funds' risk of segregation. That part Analyze the trust schemes risk isolation characteristics. The isolation vectors mainly include the form of isolation carrier companies, limited partnerships and trust isolation vector mode. This paper pointed out that the trust funds set plan have no real risk of isolation carrier presence. Third is the plan of credit enhancement features, that is, Government Credit. The writer elaborate credit enhancement mode theoretically, including internal and external credit enhancement. Finally, the author elaborates three relevant legal concepts. They are real estate trusts, real estate securities and the trust funds set.The third part is the legislative thinking of trust funds set triggered by the trust scheme. The trust fund plan includes complex legal relationship. In this paper, the writer chooses a few of the major legislative issues to ponder. First is the law on government security regulations, and the second is the information disclosure of the trust funds set and risks isolation system regulation, and the third is the special purpose company law regulation.The last is the conclusion. Trust funds set plan has a tremendous investment driving force. We have no relatively safe operation mode. Stakeholders don't paid enough attention to the investment risk .Ordinary investors Depend on government credit. Their investments have numerous risks. So investors and trust companies must fully attach importance to the operation of financial risk, the relevant government departments should strengthen legislation to circumvent the trust and investment risks.