Following the "Opinions of The State Council on Strengthening the Management of Local Government Debt" (referred to as No. 43), the "government-trust cooperation" business of trust companies is once again facing an impact。Recently, the news of trillion local debt replacement has attracted market attention。Industry insiders believe that trust companies' "political and trust cooperation" business will be impacted, but the extent of the impact depends on the scope and way of debt replacement。However, after No. 43, trust companies have shown obvious differences on the business of information and government cooperation, coupled with little progress in the PPP model, trust companies are in a dilemma in the field of infrastructure construction investment。

　　New government and trust cooperation business was hit

　　It is reported that 1 trillion yuan of local debt replacement quota has been approved, allowing enterprises to borrow new and repay old in the spirit of contract for replacement, the Ministry of Finance will soon announce the specific plan for replacement。According to previous media reports, the amount of stock debt replacement is 3 trillion yuan。

　　Haitong Securities analyst Jiang Chao believes that there are several ways to replace the stock of debt: First, partial replacement and market issuance。The maturing local government debt that is not included in the quota can still be repaid through traditional trusts, loans, urban investment bonds and other ways, which means that the supply of related high-yield varieties such as trust and urban investment bonds related to financing platforms will decrease significantly。Second, comprehensive replacement and market issuance。Give local governments the authority to issue 3 trillion yuan of local government bonds to the market to replace the corresponding debt due in 2015。This means that the supply of related high-yield varieties such as trust and urban investment bonds related to financing platforms will basically disappear。Third, comprehensive replacement, the central bank subscription。Giving local governments the authority to issue 3 trillion yuan of special local bonds, issue them to specific investors (such as policy banks), and then subscribe through the central bank's re-loans, which also means that the supply of trust, urban investment bonds and other related high-yield varieties related to financing platforms will basically disappear。

　　It is worth noting that since 2012, some trust companies doing "political and trust cooperation" business require that the counterparty is not in the list of government financing platforms issued by the CBRC。General manager of the research department of a central enterprise trust company told the China Securities Journal reporter that it is not clear whether the scope of local debt replacement includes platform companies outside the list, if it does, it will have a greater impact on trust companies;If it is not included, the impact is relatively small。However, the person also said that the local debt replacement for the stock of government and trust cooperation products, its security will be greatly improved。

　　The trust blood transfusion infrastructure is down

　　In fact, with the clean-up of local debt regulations, closely related to the "political cooperation" products, its impact has begun to show。

　　At the end of last year, when the No. 43 document was issued, it was believed that the cooperation business of the government and trust companies would be terminated, and at that time, there was a rush to issue such products among trust companies。China Securities Journal reporter learned that since the beginning of this year, many trust companies have stopped political and trust cooperation business。

　　"Now our company is still selling last year's products, this year did not do a single.。A large trust company related business people said that after No. 43, such businesses were stripped of government credit is the main reason for the business to stop doing。

　　But trust companies continue to issue products。A senior trust manager engaged in this business told the China Securities Journal reporter: "Although the government credit has been stripped, in fact, some platform companies or counterparties have good asset quality, coupled with local needs to solve the stock of debt, so our company is still doing.。”

　　"There is a lot of disagreement in the industry about this business now," but he found that in the recent past, some trust companies that had stopped the business have started doing it again。

　　Industry insiders believe that the reason is that, on the one hand, the investment of the information-government cooperation business is mostly infrastructure construction, and the investment opportunities contained in it cannot be ignored。On the other hand, the "PPP" model, which is considered to be the next stop of the "government-trust cooperation" model, has made little progress in trust companies。Previously, a giant trust company originally intended to participate in the first batch of PPP pilot projects of the Ministry of Finance, but the longer financing term and lower financing costs offered by the financiers made it finally give up。

　　"Now, we have abandoned that business。The relevant business personnel of the company told the China Securities Journal reporter that the company has not mentioned PPP anymore。The aforementioned general manager of the research department of the trust company also believes that due to the long term of the PPP model, there are problems such as the need to find a suitable entry point, and the matching of the fund term, which makes it difficult for the trust company to participate in PPP and difficult to land in the short term。