1. About trust
In China, especially in the eyes of the general public, trust is usually regarded as an institution or an industry, so the rise and fall of trust is often manifested as the rise and fall of an institution or an industry. But in fact, the word trust can be widely spread around the world. It is not based on an institution or industry named after trust, but mainly exists as an institutional arrangement of "trust-based entrustment". The fundamental reason why this institutional arrangement is recognized and accepted by most countries lies in its repeatedly verified and indisputable functional advantages.
So, what kind of functional advantages does this trust system arrangement based on trust have? Property transfer and property management are the two basic needs of human society. Trust system is developed to meet the needs of property transfer, and it is perfect and mature with the continuous enrichment of property management needs. From a legal point of view, the trust system is usually characterized by separation of ownership and interests, independence of property, limited liability and continuous management, and gradually shows three basic institutional functions and advantages: long-term planning, flexible space and full protection of beneficiaries' rights and interests. The specific design and application of trust system in different historical backgrounds and institutional environments in various countries is actually a constant pursuit and response to the long-term, different and deterministic property management needs. The three basic institutional functions of long-term planning, flexible space and full protection of beneficiaries' rights and interests have become the main demands of trust system supply.
What needs to be emphasized is that no matter what characteristics the trust system shows in the transplantation and dissemination of various countries, its original intention is always to standardize a service standard called "entrusted financial management"; No matter what name or form the subject providing this service appears, it must do its duty in the process of entrusted management of other people's property. Fulfill the obligation of honesty, credit, prudence and effective management, that is, show its "integrity" and "professionalism". "Being trusted by others" is based on others' trust in their "integrity" and "professionalism"; "Financial management on behalf of customers" must have and embody the characteristics of "honesty" and "professionalism". So, how to ensure that the trustee really has and embodies such characteristics and strength? This is one of the goals of the unique system design of trust, which has been continuously transformed and improved after its formation. In short, trust is an institutional arrangement or institutional supply that regulates the behavior or relationship of "trust-based entrustment".
2. The combination of "trust" and "financial management"
What is the relationship between trust and financial management, a concept with such a strong contrast between the status quo and history? In fact, their coincidence point is a kind of "trust-based entrustment" behavior or relationship.
The enlightenment of combing and analyzing the concepts of trust and financial management is that if a social economy does not form or devote itself to cultivating a concept culture of "trust-based entrustment", it will not form or will never form a real financial management demand; However, if this kind of social economy can't form and improve the institutional arrangement of "trust-based entrustment", it will never be able to provide real financial services.
The further conclusion is that the market demand such as "financial management" needs the institutional supply such as "trust". Or more specifically, the financial services that all institutions or individuals in the market are providing or will provide should be regulated by a unified set of trust laws and regulations.
How to choose trust products
Of course, the choice of trust products must be based on controlling trust risks. As mentioned above, first of all, it starts with the analysis of three hidden risk points of trust products. The first is to look at the trust product itself. At present, the trust products launched by trust companies are all aimed at designated trust projects, that is, the specific investment of trust funds. It depends on the industry in which the investment project is located, whether the cash flow is stable and reliable during the operation of the project, and whether the project has broad market prospects and sales after it is put into production. These all mean the success rate of the project.
The second is to look at the trustee, trust and investment company. We should choose a company with a certain market reputation and stable operating performance. This can be determined by understanding its financial strength, integrity, assets, business level, personnel quality and historical performance. After five times of rectification, there are still a few problem companies in recent years, all of which are due to the lack of good professional ethics and unauthorized misappropriation of trust funds, leading to the outbreak of the crisis. Therefore, when considering a trust product, it is very important to see which company he is from.
The third is to see whether the safeguard measures of trust products are complete. In case something goes wrong with the project. Whether the original preset guarantee measures can timely and effectively compensate the trust principal and interest. Many companies often take double or even triple guarantee measures to improve the credit rating of trust products just in case.
The average family regards trust as a tool for investment and financial management, and should do what they can. After all, investment has an opportunity cost, so they should choose the right product to add value to their property after analyzing the product. When buying a trust, don't spend all your investment funds on one product. The term should be combined with the length, and the income should not be too high. After all, high income means high risk, which is basic common sense. Generally speaking, trust institutions with stable management style pay great attention to the credit status and financing cost of cooperative enterprises when designing and launching loan fund trust products. In order to solve the current capital demand, in the absence of bank credit, enterprises that actively seek trust financing always pay high interest. Its essence may be to slowly transfer the financial risks of enterprises to investors, and the potential risks are often backward. Investors must make rational decisions and invest soberly.