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A Research On The Dealing Behaviors By Trust Investment Institutions At The Capital Market

Posted on:2005-09-11Degree:DoctorType:Dissertation
Country:ChinaCandidate:Y X YuFull Text:PDF
GTID:1116360152983204Subject:Statistics
Abstract/Summary:PDF Full Text Request
In china, as an outcome of Reform and Open Policy, trust institutions have developed rapidly in the past 20 years. With the belief "entrusted by customers to finance for them", they actively took part in our socialist economic construction. Their development provided all kinds of financial support for all industries, especially for the development of regional economy. However, in their rapid development, many kinds of problems exposed, including: (1) Operations didn't conform to the standard, which to some extent disturbed financial orders. (2) Capital scale was rather small and lacked of competence in the market. (3) Government intervened too much and enterprises operated in a bureaucratic way. (4) The goal and orientation were ambiguous, none of trust institutions has formed its own features in its operation. (5) The inside management wasn't strict and the outside supervision was inefficient. Poor outside environments and inside management led to great risk in their operation, of which the bankruptcy of Guangdong International Trust Corporation is an example. Its bankruptcy rang an alarm for the operation of trust institutions in our country. Trust institutions would no longer make decisions at random or operate in a disorderly way. Otherwise, they would be faced to a vital challenge.As financial system is reformed further and laws and regulations concerning management of trust set up, trust institutions are required to operate in an orderly way. Gradual perfection of market economy system will surely lead to sharp competition between trust institutions. With verification of property right and the setup of property right transaction market, trust institutions must change their goals, with maximizations of profit being one of their main goals. And the way of management and making decisions are required to adjust accordingly. Making decisions in a scientific way has become an important task, further research of which not only arised from the change of economic system environment in the transition period, but also arised from actual requiremens to improve competence in the market after entry into WTO.As non-bank financial organizations, trust institutions have a variety o f businesses. But c apital o peration i s i ts m ost i mportant n uclear b usiness, w hich d etermines t hat trust institutions must actively have an eye on and take part in transactions in capital market. Capital market is a risky market, the features of which investors to balance between risk and profit. According to their nature and on the base of balance between profit and risk, trust institutions must improve their investment structure at length and build up reasonable capital structure. But how? This is a problem urgently being dealt with. But all these problems can be generalized as a problem of behaviors in capital market. This article tries to deal with the surviving and development of trust institutions completely and systematically, on the backgrounds of our economy, legislation, system, society and culture. This article includes 5 chapters.Chapter 1: Introduction. As an opening part of the whole article, this chapter deals with backgrounds of choosing this topic, theoretical and practical significance of thisresearch, concerning domestic and abroad research and analytical structure of this article.Chapter 2: Features and classifications of modem trust institutions. This chapter starts with the origin of trust, then overviews its developing process, emphasizes on the basic economic backgrounds of UK's, USA's and Japan's trust development and their features, on the base of which classifications of modern trust have been formed. Using the experience and lessons of western developed countries as a reference and taking into consideration specific practice in our economic and financial market, this chapter analyzes in detail the situation trust in our country, and points out problems existing in our trust industry and reasons for them. On the base of above analysis, this chapter also p uts forward a p oint t hat t he d evelopment o f o ur indus...
Keywords/Search Tags:trust institution, trust model, transaction in capital market, the value of controlling right, mechanism designing
PDF Full Text Request
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