A Study On The Institution Of China's Trust Industry Development

Trust is an innovative property management system, it originated from England and developed in America and Japan. Because of the function of property management and finacing, Trust, together with bank, stock and insurance, combines the four major pillars of modern financial industry. Since the reform opening in china, trust has gotten its authentic development. But in those years, because of the absence of formal institution, trust industry of china has been adjusted for five times. Institutional factors are the main factors that the baffle development of trust industry. So this paper puts emphasis on institution to analyze the development of trust industry.Relatively to the lively performance of the trust business, the law hiding at its back is worth further pondering. The winding road of the development of trust in China can be regarded as a silhouette of the financial reform for more than 20 years, the orbits of institutional transition can be seen indistinctly among them. This paper will adopt a theoretic frame of the new economic history school, and approach into the system demand and supply, the informal and formal restriction, the forced and induced institutional transition, the system path dependence etc. Although trust has its law frame for development, institutional bounds still exist in trust industry. So I investigate trust'realities and propose some policy suggestion to improve our trust industry's institutional construction.