On November 12, 2011, the 2011 Summit for China Private Placement Fund Leaders sponsored by China Industrial International Trust Limited (Industrial Trust) was jointly held by Industrial Securities Co., Ltd. and Shenyin & Wanguo Securities Co., Ltd. in Sanya, Hainan. Over 120 people, including relevant leaders from regulatory authorities, renowned experts and scholars from China, and representatives from major commercial banks, well-known domestic brokerages and outstanding private placement fund management companies attended this summit. The summit mainly focused on the present situation and future trends of the macro-economy and finance both at domestically and abroad, the summit considered and discussed the opportunities and challenges faced by the Chinese capital market and especially the Chinese private placement fund industry, aiming to push forward the sustainable and healthy development of the Chinese private placement fund industry by combining the wisdom and strengths of experts, scholars, private placement fund management companies, trust compan ies, securities companies, and commercial banks.
At the summit, Yang Huahui, Board Chairman of Industrial Trust delivered the welcome address, and emphatically introduced the development of the securities trust business of Industrial Trust, particularly in the field of sunshine private placement, expressly indicating that Industrial Trust would devote itself to building a securities trust business as one of its key and distinctive businesses. Renowned domestic experts and scholars, such as Wang Guogang, Director of the Institute of Finance and Banking, Chinese Academy of Social Sciences, and Gao Shanwen, Chief Economist of Essence Securities, delivered key-note speech, interpreting the current macroeconomic and financial situations of both China and the globe, forecasting future development trends. Zhu Yun, a senior analyst at Shenyin & Wanguo Securities Research Institute, focused on analyzing the current development and future trend of the private placement industry in China. Zhang Yidong, chief strategy analyst of the Industrial Securities Research Institute, showed how to get onto the right path in the future A-share market by making complete use of its specialized advantages in strategy research. Mo Taishan, CEO of Shanghai Chongyang Investment Co., Ltd., analyzed the opportunities and challenges faced by the economic development in China in 2012 and their influence on the A-share market. Ding Guorong, Board Chairman of Shenyin & Wanguo Securities presided over the round table forum on private placement. The brilliant round table forum was teeming with insightful and witty remarks. Leaders of a number of famous private placement fund management companies, including CR Assets Management Co., Ltd., Shanghai Purple Stone Investment Ltd., Shenzhen Golden Investment Management Co., Ltd., Bohong Shujun Equity Investment Management Co., Ltd., and Fujian Daochong Investment Management Co., Ltd., etc., shared their original and sharp opinions and views as well as excellent investment strategies on the theme of opportunities and challenges of Chinese private placement funds in 2012 against this general backdrop. Lan Rong, Board Chairman of Industrial Securities delivered the closing speech, expressing his anticipation for the development of the private placement fund sector, and he indicated that Industrial Securities and Industrial Trust would work together to provide better services and cooperation for the development of Chinese private placement funds.
As a important measure serv ing the development of the industry of private placement fund in China, Industrial Trust, joined up with Shanghai Suntime Information Technology Co., Ltd., official ly and ceremoniously released the “Industrial Trust·Suntime Chinese Private Placement Fund Index” and Industrial Trust - Suntime Chinese Brokerage Collective Wealth Management Index” at the summit. The above two indexes aim to reflect the overall performance indices of the Chinese market of private placement funds, providing a standard for assessing the private placement fund s market situation, increase the understanding of investors and the general public to private placement funds , and improve the influence of private placement funds in the capital market. At the same time, the two parties also indicated that they would jointly compile the “Industrial Trust - Suntime Chinese Private Placement Fund 100 Index” and “Industrial Trust - Suntime Chinese Private Placement Fund 50 Index” as well as other series of sunshine private placement indices, so as to provide a brand-new performance evaluation system for the Chinese private placement fund market based on selective samples, allocated weight ings and scientific measurements. In addition, Industrial Trust w ill also develop new ind ic es based on the private placement funds on its own platform, and on that basis, assess the performance of private placement funds on its platform, so as to enhance the popularity and influence of private placement fund companies cooperating with Industrial Trust and their products, intensif ying its long-term and stable cooperation with investment consulting companies, achiev ing common growth through development.
Since 2004, the private placement fund industry has become a player not to be ignored and an important investment force in the Chinese capital market following its vigorous development momentum and eye-catching investment performance. Up to now, the Chinese private placement fund industry has accumulatively issued over 2,200 private placement trust products, of which nearly 1, 600 are existing, and the scale of existing sunshine private placement products is approach ing RMB 170 billion. Relying on acute responses to the market, stable and wise investment strategies and good investment returns, the private placement fund industry in China has won the recognition and favor of investors. With December 29, 2006 as the benchmark, the yield rate of “Industrial Trust - Suntime Chinese Private Placement Fund Index” reached 111.08% on October 28, 2011, far outperforming that of the Shanghai-Shenzhen 300 Index (32.73%) over the same period.
Industrial Trust, the sponsor of the summit, was established in March 2003, and in January 2011, it was controlled by Industrial Bank Co., Ltd. with the approval of the State Council and China Banking Regulatory Commission (CBRC), becoming the third trust company to be controlled by a commercial bank in China. Up to now, the total fixed assets of Industrial Trust have reached RMB 1 billion, and the balance of trust assets under its management ha s gone beyond RMB 100 billion. The trust projects developed accumulatively have reached 838, with 439 having been completed smoothly. The company's settlement trust plans have all been cashed in on schedule or in advance. The proceeds of all trust products have reached or outperformed the ir expected yield rates, with existing trust assets in normal operation. Adhering to the business development strategy of “Bas ed in Fujian and Serving all of China”, up to now Industrial Trust has established 9 general management departments, 11 business development departments and 1 customer marketing and service department, with the capability to operate and provide services across the whole country. Moreover, it has become an equity participant in Zijin Mining Group Finance Co., Ltd. and GF Huafu Securities Co., Ltd. In the appraisal of the China's Outstanding Trust Companies activity, Industrial Trust won many honors in succession, such as the “Honest Trust – Rising Trust Star Award”, the “Most Areal Influential Trust Company”, the “Best High-end Customer Investment Channels Award ”, the “Trust Company with the Greatest Growth Potential”, and the “Best Areal Wealth Management Institution”, etc.
In order to provide better services to high-end customers, improve general wealth management services capabilities, and employ the special system advantages of the trust sector, since the second half of 2010, Industrial Trust has fully recognized the special significance of the capital market to the trust industry. While actively develop ing the securities trust business, the company has taken the lead among trust companies in China in establish ing a special security trust department, and constructed a leading management system for the securities trust businesses in China. Through improving the risk control system for the securities trust businesses, the company is committed to providing high-quality efficient trust finance services for all private placement fund management companies. As revealed by the data of Suntime, by November 11, 2011, Industrial Trust ha d released 125 securities investment based trust products accumulatively, of which 70 were non-structure d trust products and 55 were structure d trust products. The total business scale of the company has reached RMB 21.4 billion, of which non-structured products accounted for RMB 9.8 billion, and structure products 11.6 billion. The market share occupied by its total business scale amounted to 13%. Since the beginning of this year, Industrial Trust has released 83 securities investment based trust products in total, accounting for a market share of 15% on the same period. The product scale reached RMB 16.5 billion, accounting for a market share of 25%, taking a top rank in the Chinese trust industry. The company has established business partnerships with the most outstanding private placement fund management companies in China. Industrial Trust, in cooperation with private placement fund management companies, has released a variety of private placement funds, and quite a number of them have won the recognition of the market and investors with their stable investment style and good business performance. For instance, the “Industrial Trust - CR Phase I Trust Plan for Securities Investment Portfolio” jointly issued by Industrial Trust and CR Assets Management Co., Ltd. has witnessed a yield rate of 72.26% one year since its initiation, ranking No.1 in the rating of sunshine private placement products in China. It also won the “2010 Best Trust Plan for Securities Investment” at the “4th Appraisal of Chinese Outstanding Trust Companies” sponsored by Securities Times. The “Industrial Trust - Zhengda Trust Plan for Securities Investment Portfolio for Subscribing Golden Turtle Stable-winning New Shares” released jointly with Shanghai Zhengda Investment & Management Co., Ltd. has seen high returns in the bearish market with its original product design, accurate market breakthrough and in-depth research of the new share subscription market, boasting a yield rate of 14.47% since its initialization this April. In the performance appraisal rating of the third-party institutions, Industrial Trust has two or more private placement fund products ranking among the top 10 in China each month.
A related person-in-charge of Industrial Trust indicate d that the company hopes to become a first - class integrated and diversified trust company in China with its own characteristics through 5 years of effort, and by m aking use of the opportunity the fast development the Chinese capital market is witnessing. The company will intensify its all-round cooperation with the mainstream commercial banks and famous brokerages, striving to provide all-round services for the development of the securities investment based trust business including private placement. It will devote itself to making the securities investment based trust business one of its distinctive businesses for key cultivation and development, being devoted to making proper efforts for the sound development of the private placement fund industry, investment and wealth management of high-end customers and even the Chinese capital market.