What is the business model of the trust company? How do they make money?

Trust companies are generally state-controlled, with provinces 1 2.

On the one hand, they collect projects through the project department and invest in various fields of society by means of creditor's rights, mezzanine and equity, on the other hand, they raise funds by issuing trust wealth management products.

The wealth management products issued by trust companies are somewhat similar to those of banks, but the areas that banks can invest in are very limited, and trust companies have the widest investment scope, the most investment methods and the strictest risk control among all financial institutions.

Usually, trust companies will make profits by charging management fees for projects, which are generally 3% of the project financing amount/year.