The Institutional Analysis On The Optimum Development Of China Trust Industry

To be a characteristic and freedom property management method, trust has been using and spreading for several centuries from different law systems and countries as a world institution. Trust industry has developed over 100 years in China, but the exotics has never been localization with fluctuation. After the years of 1978, trust industry has been recovery and development with reform and opening by the ways of industrialization, but it doesn't take financing as a main business, and also weakens and impacts the national macro-control, as a results, it suffers some rectifications and regulations, and what's more, with the marginalization situation, all circles has forms some questions about trust industry, such as"is trust industry a bad children of financial industry","does China need trust industry at all","where is the future of trust industry"and so on. It's gradually and obviously that the three problems has been puzzled and restricted to the development of trust industry.According to the situation, this paper takes trust industry to be an institution system with the new institutional economics, and then uses three subsystems such as institutional transition system, institutional enforcement system, and institutional innovation system to deeply and painstaking analysis the trust industry problems, in order to grasp the cause of contradiction, which is helpful to the optimum development of China trust industry.This paper has three basic conclusions after analyses. Firstly, takes trust industry as a bad children is not objective and fair, we need eliminate the path dependence by marketization in order to accelerate endogenous institution process. Secondly, function orientation doesn't match with supervision mode which leads to the questionof the value of trust industry, in fact, we need develop and strengthen by the ways of making the"comprehensive financial service offers"and"functional supervision"together. Thirdly, trust industry should start from the comparative advantage and chartered value of the trust institution and its legal principle, on the one hand, its business model needs transform and upgrade by the public offering, private placement, assets management and so on, on the other hand, its organization mode needs change with financial holding conglomerate or bank-trust alliance under the different resource endowment, in order to realize the omnidirectional and deeply innovation which is useful to the difference development road of trust industry.