China Trust Industry Problems And Countermeasures

In developed countries, the trust industry has been one of the biggest backbones in the financial region with bank, insurance and securities, and played an important role in the development of national economics. It's the establishment of China International Trust and Investment Corporation that resumed the Trust Industry of China. Over more than twenty years later, the government gave many policies make the trust industry grow up and meanwhile redd it up. Three laws, "trust law", "Administer method of trust and investment corporation", and "Temporarily Administer method on gather fund of trust and investment corporation", set up the law frame for the development of the trust industry. And China Bank Regulatory Commission would strengthen the supervision of it. Under these conditions, theoretically trust industry can go forward on well-balanced basic.While there are so many problems that made trust and investment companies face lots of internal and external risks in real operation such as the immature market, the scarcity of government legislation and supervision, the management risks in the trust and investment companies and so on. All these need be solved by the trust and investment companies under the assistance of government department responsible for legislation and supervision. This article states from the real status of the trust industry, analyses the risk of it and brings forward the solutions from the following four angles: innovating trust production, such as NPL trust, state-owned stock trust, leasing trust, MBO trust, ESOT, etc, perfecting the mechanism of risk control from VaR model and risk estimation, enhancing the cooperation with other financial institutions like banks, securities institutions, insurance companies and leasing companies, and strengthening the system of government legislation, supervision and self-restriction of trust and investment companies.