China 's Development Of Trust Business Viable Direction

The Object and Significance of Thesis: Trust acting as an industry which deputizes seftlors to manage and transfer trust property, can offer the settlors diversified services of property management and transfer. And its financial functions can also play an important role in a country's financial market and economic development. Therefore, it is highly developed in Europe, the U.S, Japan and Korea and it also benefits much the development of these countries. But trust industry in China experienced too many setbacks. As a result, about 1000 trust companies have gone into liquidation, been transferred to other business or been combined. 239 ones which survived the setbacks by the end of last year are facing much more severe cnsis. Thus, we have to think about the trust industry carefttlly. This thesis analyses the aspects relevant to trust industry and concludes that trust industry in China is not only essential but also feasible. It also gives advice on how to promote the trust industry in China. The author hopes that the thesis can contribute to the development of trust industry in China. The Layout of the Thesis: This thesis begins with the doubt whether there is any necessity or feasibility to develop trust industry in China while it has experienced so many setbacks. After discus5ing the prcblems, it concludes that it is necessary to develop trust industry. Then it further analyses the conditions for the development based on the social fortune and demand for services of managing property. Based on these two conclusions, it summarizes the state of trust industry in China today and works out the reasons that block the development of trust industry in China. In the end, it gives advice on how to develop the trust industry in China, and the breakthrough in trust business is especially mentioned. The Main Content Foreword of the thesis presents the writing background and main problems in trust industry. Section 1 The Necessities of Trust Industry in China Firstly, it introduces the history and essence of trust as well as a few conceptions about it. Secondly, trust possesses the characteristics of long-term planning, flexibility and lrotection for beneficiaries which is needed by the modem society. Thirdly, financial function of trust can抰 be substituted by the commercial bank and securities industry. Finally, it concludes that China needs regulated trust business. Section 2 The Feasibility of Trust Industry in China Firstly, the large amount and special structure of private property provide the trust industry in China with realistic market and bright future. Secondly, property rights of the corporations make the existence and expansion possible. Finally, negative factors are diminishing, which provides the China trust industry with bright prospects. Section 3 The Problems and Causes Existing in Current Trust Industry in China Firstly, it points out with facts many problems exist in the trust industry in China. Secondly, it summarizes that the external reasons (including the misled orientation of trust industry, etc.), the object factors (including the level of economy, etc.) and the factors of trustees themselves (including the low quality and inefficiency of the staffs, etc.) block the development of trust industry in China. Section 4 The Countermeasures to the Im...