What's the difference between trust companies, banks and fund management companies?

A trust company is a financial institution established to operate trust business in accordance with the Company Law, relevant policies of the People's Bank of China and other relevant trust laws and regulations. Trust refers to the act that the trustor entrusts his legally owned property to the trustee based on his trust in the trustee (trust and investment company), and the trustee manages or disposes in his own name for the benefit of the beneficiary or for a specific purpose according to the wishes of the trustor. Generally speaking, it is "entrusted to manage money on behalf of others". Trust company's business is actually to manage money on behalf of customers, and trust is a flexible way. For example, Company A needs a sum of money to operate a project, and the trust company can design a trust plan according to the specific situation of Company A, including the term, income, responsibilities and obligations, and then the trust company can use the existing funds to purchase this trust product or raise funds. Buying trust products with funds is based on trust in trust companies.

Banks are financial institutions engaged in absorbing deposits and issuing loans. I believe everyone is familiar with the traditional business of banks. Banks are also engaged in some intermediary business, and now there are more and more. There used to be a lot of foreign exchange collection business, but now there are more consignment business, and there are some emerging businesses like enterprise annuity.

The business of fund management companies is mainly to raise funds to invest in the stock market and bond market.