Study On The Growing Problem Of Trust Company In China

Trust Companies play a more and more important role in making up the frangibility of financial system and promoting the development of the national economy with the market economy system established in China. Meanwhile, some problems are exposed, such as bad quality of capital, weakness of inter-control, and seldom innovations of products.Neither domestic nor abroad found the real reasons for the problems by the growing of Trust Companies. What on earth leads to the failure of Trust Companies? Therefore, it is significant to discover the growing characters and law of Chinese Trust Companies find the real reasons why we need Trust Companies in China, explore the influence factors in growing, avoid the risks, and promote the development by the hard growing road.The paper studies the growing reasons of Trust Companies and the influence factors in growing. It is consists of four parts. Firstly, it states the society requirements of finance and capital management, the unbalance frangibility of financial system, and the agent multiplier effect and the agent cost effect. Secondly, it analyses the growing influence factors on the base of the Trust Companies growing road in China, which found that the general development of the Trust Companies is in accordance with the macroeconomic fluctuations period, the benefits of Trust Companies are close related to GDP growth rate, inflation rate, and government plays the decisive role in the development of Trust Companies. Thirdly, the paper presents some creative ideas through fund-raising, investment direction; products fluidity, risks avoiding, and so on according to above study achievements. Finally, it designs Trust Companies growing early-warning model through outside environment index system and inter index system and applies it into E trust company to do empirical research by KLR signal analysis.