Investment is bound to be accompanied by risks. How can trust avoid risks while pursuing benefits? From product establishment to project liquidation, trust companies are cautious step by step. In order to avoid risks to the maximum extent, trust companies generally control risks from both counterparties and collateral, and give priority to those projects with stable operation, strong solvency, sufficient sources of first repayment, easy realization of collateral and high realization value. The mortgage rate of real estate is generally controlled below 50% of the market evaluation value, and the stock pledge price of listed companies is generally controlled at about 40% of the secondary market price.
After the establishment of a general trust project, the trust company will conduct risk investigation on the project regularly and irregularly, including the financing party's operation, financial status, mortgage (pledge) and so on. For listed companies' equity pledge projects, trust companies will also take the way of marking the market day by day to prevent market risks.
Once the risk signal endangering the safety of the project is found, the trust company will take emergency measures in time, such as requiring the financier to repay in advance according to the contract, applying to the court for enforcement, and taking stop-loss measures in time to maintain the safety of the project.
At the same time, after all the project processes of the trust company are determined, they should be reported to the banking regulatory bureau. If the regulatory authorities think this project is risky, they will stop it in time. Especially with the tightening of national real estate regulation, the pre-filing of real estate trust projects is to put risks on the front line.