After the announcement of Hengdian Dongci and Yingluo Huake Technology entrusting Guotong Trust to establish trust funds, which were involved in a “runaway” incident, Guotong Trust issued a statement today disclosing the details of two trusts: Yingyu No. 1 Single Fund Trust and Guotong Trust Tianyu No. 4 Single Fund Trust were established on November 24, 2022, and January 18, 2023 respectively, with trust sizes of CNY 300 million and CNY 120 million.
Guotong Trust stated that the above-mentioned trusts do not have expected rates of return. The underlying assets and consulting service providers are designated by the settlor to be determined by Guotong Trust. When establishing these trusts, Guotong included sufficient risk disclosures regarding potential risks associated with underlying assets (including but not limited to regulatory penalties faced by underlying private fund managers and consulting service providers) in the trust documents.
After abnormal situations occurred in the invested underlying private funds, Guotong Trust promptly disclosed relevant information about these situations to the settlor and redeemed the underlying fund products according to their instructions. At the same time, Guotong conducted a comprehensive risk investigation into all businesses involving private funds and reported it to regulatory authorities.