Study On Regulation And System Of Chinese Trust Market

In spite of five times' redressal, various kinds of systematic flaws still exists in Trust Industry in China and no regular norms have been formed till now, which results with latent great risks in trust and financial market, it finally evolve into one and another trust events.This article starts with "Jinxin Trust Incidents" and "Jinxin Trust Events" in recent years, reveals frequent eruption of trust risks arise just from the deficiency and irrationality in trust-related system design in illustrative and dialectic method. Moreover, where the deficiecy lies in system design and implementation is analyzed, finally, rational suggestion on how to perfect effective system in Chinese trust market is put forward. The first part of this article " risk of trust market" consists of " non systematic risk" and " systematic risk", mainly introduced risk structure in trust market and revealed systematic risk lead to expansion and intensification of non systematic risk till chaos and inordinance of trust market.The second part mainly analyzed " systematic flaws in Chinese trust market", revealed irrational design one by one in current trust system with case study. This part is composed of three section: " trust law-making with defective designs, lack of supervision and monitor againstderegulation" " lack of effective and pertinent risk control mechanism" " no effective combination between the development of trust industry and market function", which mainly discuss no good solution on the above problems is the principal of teetering trust industry, its defective system design could not control effectively non-systematic risk but also inducerisk emergence more easily in trust market.The third part analyze how to construct regulating mechanism in Chinese trust market, which is composed of "perfecting law-making design of trust industry, strengthening supervision and management" " strengthening risk awareness, constructing risk control mechanism" and "perfecting related system of trust industry by combining with market element", and specific feasible suggestion in constructing related system and regulating Chinese trust industry is put forward.The author hope to fundamentally change " sub-healthy status" of trust market in China by regulating trust mechnism and perfecting various system, make trust industry become an indispensable part of financial capital market by turning challenge into opportunity in good macro-economy and market climate and fully exerting unique advantage of trust mechanism so that it make greater contribution to our socialism economic construction.