After completing a series of reforms including equity restructuring, management reshuffling, and risk clearance, Jilin Trust has achieved a remarkable turnaround. Following explosive growth in 2024, the trust company has been active in 2025. On November 20, Northeast Securities (000686.SZ) announced that Jilin Trust pledged 82.8 million shares, accounting for 29.99% of its holdings and 3.54% of Northeast Securities' total shares, for financing purposes. Earlier this year, Jilin Trust had just released a pledge of 138 million shares in Northeast Securities.
Chairman Xing Zhongcheng stated that after completing risk reforms, Jilin Trust has embarked on "secondary entrepreneurship." With multiple collaborations in 2025 with leading fintech firms like Orange Digital Technology and Jiayin Technology, consumer finance appears to be a key focus area.
As traditional business growth plateaus, consumer finance could provide new momentum. However, business transformation and technology investments require substantial funding. Will the financing obtained from pledging Northeast Securities shares support this shift? In the highly competitive consumer finance sector, can Jilin Trust stand out?
1. **Pledging Nearly 30% of Northeast Securities Shares After Earlier Release** Jilin Trust is the second-largest shareholder of Northeast Securities, holding 276 million shares (11.8% stake). The company confirmed that the pledged shares carry no liquidation risk, indicating cautious risk management.
This isn't Jilin Trust’s first pledge. In April 2023, it pledged 138 million shares (49.99% of its holdings) for financing, which was released in January 2025. Compared to the previous high pledge ratio, the current one is significantly lower, reducing liquidity risks.
Economist Song Qinghui noted that as a trust company, Jilin Trust faces stricter leverage and net capital regulations, making high pledge ratios a regulatory concern. Both pledges used China Trust Protection Fund as the pledgee, offering lower interest rates than traditional loans without requiring physical collateral.
As of November 21, Northeast Securities’ stock closed at 8.98 yuan/share, down 6.36%, with a market cap of 21.02 billion yuan. The pledged shares are valued at approximately 794 million yuan.
2. **Post-Ownership Restructuring, a "Post-80s" CEO Takes Charge** Jilin Trust, founded in 1985, underwent multiple equity changes in recent years. In 2023, its registered capital doubled to 3.15 billion yuan after new investments. By 2025, ownership shifted further, with Jilin Financial Holding Group becoming the controlling shareholder (62.11%).
The company holds stakes in banks, securities, insurance, and funds, including a 61.25% stake in Tianye Fund and 11.8% in Northeast Securities. After years of turmoil—including four former chairmen implicated in corruption—Jilin Trust has stabilized under Chairman Xing Zhongcheng, who took over in May 2024.
The management team has also been rejuvenated, with "post-80s" banker Lü Jin appointed as CEO. By end-2024, Jilin Trust reported revenue of 1.6 billion yuan (up 916.56% YoY) and net profit of 102 million yuan (up 174.71%), ranking 20th among 57 trust firms.
3. **Betting on Consumer Finance: Will It Pay Off?** Jilin Trust is accelerating its transformation, with Chairman Xing emphasizing "secondary entrepreneurship." The company has issued tenders for internet loan systems and partnered with fintech firms like Orange Digital and Jiayin Technology.
The consumer finance sector is a key focus for trust companies. As of Q2 2024, trust investments in financial institutions totaled 2.96 trillion yuan, with consumer finance dominating. However, stricter regulations—such as capping loan rates at 24%—may limit growth.
Jilin Trust’s revival offers lessons for the industry, but its success in consumer finance will unfold over the next three years.
Comments