The operating cycle of China’s trust industry has entered a downward phase lasting nearly two years. According to the latest figures for the third quarter of 2019，industry fiduciary assets under management have experienced seven consecutive quarters of decline，while risk assets have accelerated. Compared with two years ago，the current operating and regulatory environment of the trust industry has changed fundamentally，and the cyclical adjustment pattern has become clear. The combination of short-term opportunities and long-term challenges has exacerbated the volatility of the industry’s operating conditions. For example，the stock market rebound in the first quarter of 2019 significantly improved the performance of trust companies’ securities-related trust businesses and their inherent businesses. At the same time，real estate related trust business and bank-trust cooperation business have shown explosive growth. In the following two quarters，these favorable factors and influences began to fade，and the growth of risk assets began to accelerate. This shows that the industry risk factors have begun to show. The risk of a hard landing in the future should be guarded against.