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CITIC Limited Annual Report 2014
Financial Services

Trust

For the eighth consecutive year, CITIC Trust was the largest trust company in China with total assets under management of over RMB902 billion at the end of 2014, experiencing a growth of 24% from 2013.

CITIC Trust provides products covering trust loans, trust investment, asset securitisation, private equity funds, equity trust and offshore asset management.

Year in review

The slowdown of the wider economy, increasing regulatory requirements and rising competition all posed challenges to the domestic trust business, contributing to a decline in business growth. However, wealth accumulation by Chinese citizens, their growing needs for wealth management, as well as the development of the new economy industries created opportunities for the business.

CITIC Trust is working to maintain its leadership position not only by improving its traditional businesses but also by focusing on product innovation and strengthening the cooperation between large enterprises and governments in economically-developed regions.

In 2014, CITIC Trust recorded revenue of RMB5.7 billion, a 3% increase from 2013. However, profit attributable to ordinary shareholders decreased 11% to RMB2.7 billion, mainly due to impairment of non-performing assets.

CITIC Trust’s net capital adequacy ratio remained stable at 266% at the end of 2014. Net capital of the company was RMB12.4 billion, while the balance of risk capital was RMB4.7 billion.

Products

In 2014, CITIC Trust launched new land circulation, infrastructure, asset securitisation, consumption, asset and family wealth management, and insurance premium trust products.

  • CITIC Trust is the first company to tap the market for the circulation of rural land, having launched six circulation trust schemes covering 44,500 Mu (approximately 2,967 hectares) under management.
  • Consumption related trust is a new area for CITIC Trust, which has collaborated with China Merchants Bank, China Mobile and e-commerce player Baidu to launch products in tourism, entertainment and telecommunications. Apart from the returns that these products deliver, investors also enjoy the consumption benefits associated in these areas.
  • Given the growing desire for wealth management and inheritance products, CITIC Trust set up the first Family Office in the trust sector, providing customised services for high-net-worth clients.

In August 2014, a subsidiary of CITIC Trust was established in Hong Kong — the first overseas holding company ever approved for the trust industry by the China Banking Regulatory Commission. This new platform broadens the company’s business channels and lowers financing costs for its customers.