Economic Analysis Of The Optimization And Governance Of Our Trust Industry

Renewed in1979, China's trust business has always been lacking complete laws of protection; therefore it has not been fully grown up to now. Over the past two years, trust business plays an increasingly important role in activating the financial market and its development has gained wide attention. From 2001 to 2002, Chinese government has issued and implemented three regulations one by one: Trust Law of the People's Republic of China, Rules on Administration of Unit Trust Companies and Provisional Administration on the Financial Trust Business which provides policy support for the development of trust business. But they can merely regulate the development of Trust Business, not promote its development. Consequently, we must eliminate the obstacles in the way of its growth from the inside of the business to get it to develop.The various advantages of Trust business help to accelerate the development of finance through financing, activating money market, digesting the bad assets. Documents on the development of Trust business are numerous, whereas, there are few on the theory of optimizing trust business. From the perspective of trust agent, this paper aims to analyze and settle the problems in trust business through exploring the problems on restricting mechanism of trust agents, increasing the responsibilities of agents, avoiding the loss of the clients caused by asymmetric information. At the same time, the measures of optimizing trust business has been offered according to China's practice and the experiences of overseas trust business.This paper consists of three chapters. Chapter one introduces the background, the purpose, and the meaning of writing this paper. First it gives a general introduction of trust business, including the definition of trust, the range of the business, the developmental state of China's trust business since 1979 and so on. Based on the annual report of 2004 of some 35 trust companies,...