To implement the spirit of the Central Financial Work Conference and regulate the development of trust companies' asset management operations, the National Financial Regulatory Administration has formulated the Measures for the Administration of Asset Management Trusts. The key points are as follows.

Adhering to a private placement orientation. Asset management trusts are defined as privately offered asset management products based on a trust legal relationship. They uphold the principle of "the seller fulfills its duties, the buyer bears its own risks; if the seller fails its duties, compensation is made according to law." They are non-publicly issued to qualified investors with risk identification and tolerance capabilities, with the number of investors not exceeding two hundred.

Strengthening risk management. Trust companies shall establish a risk management system matching the characteristics and risk profile of asset management trust business, build a full-process operational risk prevention and control mechanism, enhance concentration risk prevention and control, strictly classify underlying asset risks and manage asset quality, strengthen related-party transaction risk prevention, strictly manage maturity matching and debt leverage, and effectively guard against liquidity risks.

Tightening sales management. When conducting asset management business, trust companies shall fully explain risks to investors and shall not promise principal protection or guaranteed returns in any form. Key aspects such as trust document signing, risk assessment, risk disclosure, investor commitments, and share transfers shall be standardized. Trust companies shall be urged to strengthen the management of sales documents, personnel, channels, and distribution agencies, and standardize sales conduct.

Enhancing investment management. When using trust funds, trust companies shall ensure clear legal relationships, invest in genuine, lawful, and valid underlying assets, strictly follow the basic principle of portfolio investment, strictly prohibit illegal channel business and fund pool business, strengthen investment management of non-standardized assets, and enhance look-through management of investments in other asset management products.

Tightening net value management and information disclosure. Trust companies shall separately manage, separately account for, and separately calculate each asset management trust product. They shall calculate the net value of trust products in accordance with enterprise accounting standards and new asset management regulations, and shall not conduct separate pricing detached from the actual returns and risks of underlying assets. Trust companies shall conduct an external audit of the net value generation for each asset management trust product whose underlying assets involve non-standardized assets and whose direct investors include natural persons, at least once a year. Information disclosure conduct and content shall be standardized, and the quality of information disclosure for asset management trust products shall be improved. Next, the National Financial Regulatory Administration will strengthen supervision of asset management trust business and ensure the implementation of the Measures.