Relatively speaking, trust companies have weak ability to resist risks, so in order to resist risks, the risk degree of trust products is definitely lower than that of bank loans. For example, the mortgage loan, the bank mortgage rate is 70%, but the trust is generally below 50%, and some even less than 30%. The interest rate is high because trust represents the real interest rate of society. When credit is tight, the cost of corporate loans is high, and trust funds can be invested in a wide range. Enterprises cannot borrow money from banks through trust companies, and such interest represents the actual interests of society. In fact, the cost of many bank loans is not so low in name, which requires a lot of intermediate fees, so the total cost is not necessarily more cost-effective than trust.
The risk of trust depends on the specific project. Generally, investment in real estate and mining is risky, while investment in government infrastructure, loans for industrial and commercial enterprises, stock pledge and equity pledge of financial enterprises is risky, but it should be considered comprehensively.
These banks are affiliated to Hangzhou Industrial and Commercial Trust, Wuhan Bank of Communications Trust and Jianxin Trust. Good trusts are not here, mainly CITIC Trust and Foreign Trade Trust.