Trust

CITIC Trust is a national non-bank financial institution regulated by the National Administration of Financial Regulation. Its business scope covers trust business, proprietary business and asset management business for specialist subsidiaries.

Year in Review


RMB million	2023	2022	Change
Revenue	4,976	6,438	-23%
Profit attributable to shareholders	2,628	3,012	-13%
Total proprietary assets	49,496	49,895	-1%
Trust assets under management	2,059,335	1,540,851	34%
Return on equity	6.88%	8.24%	-1.36pp

In 2023, the regulatory authority issued the Notice on Standardising the Trust Business Classifications of Trust Companies (《關於規範信託公司信託業務分類的通知》), which clarified the boundaries and service contents of various trust businesses and further guided trust companies to leverage their advantages in the trust system in a standardised manner. In response to these regulatory requirements, CITIC Trust actively took the initiative to accelerate its business transformation and continued to optimise its asset structure, thus maintaining steady operating results. During the period, total operating revenue amounted to RMB4.976 billion, net profit amounted to RMB2.628 billion and trust assets under management increased by 34% from the end of last year to RMB2.06 trillion to year end.

Guided by the market-oriented principle and differentiation strategy, CITIC Trust adheres to its mission to serve the real economy. By developing distinctive products, capabilities, business, efficiency and management, CITIC Trust strives to build an excellent trust company that wins the support of the State, the trust of customers and brings happiness to employees. During the reporting period, CITIC Trust continued to optimise its trust business structure, and achieved transformation and innovation business scale of RMB1.38 trillion, accounting for 67% of total business, representing significant growth.

Business Development

Trust Business

Asset Trust Service: Based on legal relationships of trust services, CITIC Trust accepts the entrustment of principals and customises professional trust services such as wealth planning, intergenerational inheritance, custody, bankruptcy isolation, and risk disposal according to the needs of the principal. By the end of 2023, the scale of trust asset services by CITIC Trust gradually increased to RMB1.19 trillion, delivering good performance in many aspects. In terms of the trust service for risk resolution, CITIC Trust secured various projects from multiple large institutions, with its existing business scale ranking first in the industry. The scale of enterprise annuity/ occupational annuity services reached a total value of RMB71.786 billion, as it is the only trust company in the industry with a trustee qualification for annuities. CITIC Trust has officially undertaken CITIC Group’s enterprise annuity plan and established CITIC’s first fully licensed enterprise annuity collection plan. Building on its occupational annuity business carried out in Guangdong, Zhejiang, and Liaoning, CITIC Trust secured the occupational annuity plan in Guangxi, greatly enhancing its market influence and industry competitiveness in the sector. CITIC Trust has been cultivating the field of trust services for wealth management for nine years, maintaining a leading position in the family trust and insurance trust industries in multiple core dimensions such as its trustee scale, customer base, and innovative services. CITIC Trust has built a comprehensive trust-based home service system, focusing on dimensions of people, family, enterprise and society under CITIC Entrepreneur Office advocated by CITIC Financial Holdings. It has successively launched various trust businesses for wealth management, covering family, elderly care and other personal wealth management services.

Asset Management Trust: An asset management trust refers to a self-benefit trust selling trust products and providing investment and management financial services to trust product investors in accordance with a fiduciary relationship. As of the end of 2023, CITIC Trust’s assets under management amounted to RMB750,287 million. During the period, it continued to enhance its professional capabilities, in fields such as asset management, investment research and operation services, to build product portfolios featuring different risks and yields. In terms of capital, CITIC Trust actively satisfied the wealth management needs of both individual and institutional clients. Regarding assets, CITIC Trust encouraged and ensured that funds were invested into the real economy through multiple channels with the implementation of the “Plan for Promoting Major Policy-Driven Businesses”. In the field of active management of securities investment, CITIC Trust won the “Honest Trust-Best Securities Investment Trust Product Award” jointly selected by Shanghai Securities News and CSC Financial Journal for the fourth time for its “CITIC Trust-Assembled Funds Trust Plan on Rui Xin Steady Allocation TOF Financial Investment”.

Charitable Trust: This is a business for public interest in which trust companies manage and dispose of property entrusted to them by clients seeking to carry out charitable activities in accordance with relevant laws. During the period, CITIC Trust registered three new charitable trusts and one additional subscription, with an increase of RMB112 million in actual trust value. CITIC Trust has now registered RMB1.053 billion in its charitable trusts and remained industry-leading in terms of business scale and development quality. “CITIC Trust-2021 Fangmei Education Charitable Trust” was awarded the 12^th “China Charity Award” by the Ministry of Civil Affairs of the PRC in 2023. In addition, “CITIC Trust-2023 Xin Xing Yuan Donor-Advised Charitable Trust” that registered in the year has demonstrated the new model of charitable trusts, which allows donors’ charitable donations to be handled in a more planned, systematic and flexible manner.

Proprietary Business

The principles of the proprietary business are to achieve proprietary asset growth targets and to support the development of businesses in CITIC Trust and its subsidiary companies through the optimisation of asset allocation, according to compliance requirements in net capital coverage and leverage ratios. In 2023, pursuant to CITIC Trust’s high-quality transformation and development strategy, standard asset products continued to increase share in proprietary assets whilst improving investment efficiency. Coupled with increased allocation of bond assets, this segment contributed to a significant rise in the proportion of fixed income assets and substantial revenue from bond investments.

Professional Subsidiary Business

CITIC Trust established professional subsidiaries, including CITIC Trust PE, CTI Capital, and CITIC-Prudential Fund, to build a comprehensive asset management platform covering businesses in private equity funds, mutual funds, and overseas asset management among others.

CITIC Trust PE focused on investing in the primary equity market, with its advanced manufacturing investment funds achieving remarkable results. Several of its invested companies have already been listed on the STAR Market. CTI Capital actively pursued the cross-border market, with purchased USD-denominated bonds of central state-owned enterprises achieving good investment returns during the period. In addition, CITIC Bank successfully launched the first overseas family trust plan for a domestic client, which assisted CITIC Bank International in benchmarking against the world’s top-tier private banks. CITIC-Prudential Fund is mainly engaged in the management of mutual funds and specific assets. During the period, the annual performance of CITIC-Prudential’s multi-strategy fund ranked among the top 1% in its category, and its medium and long-term investment performance was excellent. CITIC-Prudential Fund was awarded the “5A Rating for Three-Year Active Equity Mixed Fund” by TX Investment Consulting and was honoured with awards such as the “Exemplary Fund Manager for Characteristic Development of Demonstration Cases of the Mutual Fund in the China Fund Industry for 25 Years-Yinghua Award” issued by China Fund News.

Risk and Capital

Adhering to the principle of “leveraging risk management to serve business development and promote value enhancement”, CITIC Trust pays special attention to risk prevention and safeguarding risk thresholds. The company greatly values net capital management, having accelerated the establishment of a refined capital management system, utilising capital in a highly efficient manner. It also optimised its capital structure whilst expanding the scale of its trust assets. As of the end of 2023, the registered capital of CITIC Trust reached RMB11.3 billion, the net capital coverage ratio reached 207% and the balance of net capital reached RMB27.9 billion, with its capital strength building a solid foundation for sustainable growth.


Indicator	Year End 2023 (RMB billion)	Year End 2022 (RMB billion)	Change	Regulatory Requirement
Net capital	27.9	22.4	24%	≥RMB200 million
Total risk capital	13.5	11.7	15%	N/A
Net capital adequacy ratio	207%	191%	16pp	≥100%
Net capital/Net asset	80%	66%	14pp	≥40%

Banking

Insurance