Research On Sustainable Profitability Model Of Chinese Trust Companies

Throughout the world, trust companies in the developed countries has established a national characteristic of trust pattern. With globalization of economic and finance, international trust industry has also diversified, the functions of institutions and other financial institutions with androgyny and trust of international business. Relative to the international trust industry, Our country's trust industry has been of recovery, development, consolidation and gradually become one of our financial industry 4-major in pillars more than thirty years. However, the core business and core profit model of trust companies are still not established as a whole nowadays. In this content, how to locate the position and establish there own business location in the increasingly fierce competition market for our trust companies, China's trust companies not only survive in the fierce competition, but also become one of the forth of China's finance industry with banking, insurance and securities by the right business location to stimulate the trust companies sustain stable and healthy development. This has become a pressing and towards hot issue at present.This dissertation focuses on the issue of trust companies' sustainable development, which based on the industry economics, finance, behavioral finance theories, combined with the background of China's system, the trust industry character and statistical data, analyzing the public information disclosure of the annual report and other product information by trust companies. This dissertation usies the normative analysis, and case analysis method to explore the characters of trust companies' sustainable profit model.This dissertation's mainly concludes as follows:based on industry competition theory, trust theory, the profit model theory and risk theory, firstly, this dissertation described the research background and significance that the trust companies' status and market value are concerned by the market as its rapid growth of trust assets and gradually increased profitability of trust industry, However, there are many problems of the development of trust industry, especially profitability. Secondly, this dissertation analyzes the rehabilitation and development of China's trust companies, describing the character of development,business and profitability models of UK, American and Japan. And this dissertation extracts the profitability model of China trust companies after learn from the foreign experience and legal and regulatory environment. Then this dissertation analyzes the business profitability of China trust industry, including the co-financing between bank and trust companies, aiming at the profit model problem of the trust industry to establish the basic principles and its business position of the profitability model under the background of "three rules and a law" in China. Risk control measures are necessary to ensure the trust industrial long-term development of a sustainable profit model. Then this dissertation analyzed the risks and its situation of the trust industry and put forward the method of establishing a comprehensive culture of risk management and strengthening internal corporate governance of trust companies and improving the incentive model. Finally, this dissertation makes some conclusions of common features of sustainable profit model for trust industry and points out the lackness and future research of this research.The dissertation concludes only sets up trust registries, carrying out public fund trust, establishing the national trading platform of trust products, choosing low carbon trust, and the like controlling trust industry management risk so as to build sustainable profit model in trust industry.