China Trust Industry Development Strategy Study

Trust originated from Britain and was quickly introduced into many other countries due to its special wealth management functions. Nowadays Trust industry is playing an indispensable role in capital markets of developed nations and makes up the four financial backbones along with banking, insurance and securities industries.In China, however, the trust industry's development has not been satisfactory. Because of inappropriate orientation of trust functions, China's trust industry has experienced five large-scale rectifications in less than 30 years. Up to now, China's trust industry remains at a primary stage and is faced with some problems and bottlenecks. The unique functions of trust have not been fully utilized.At present trust industry is especially advanced in Britain, United States and Japan. In spite of different regime, legal system, customs, history and economic system, The trust industry of the three countries still shares something that is worthy of being used for reference for our country. Thus, through comparative analysis of the trust's evolvement in Britain, United States and Japan this paper comes to this enlightening conclusion that trust system is the determinant factor for trust industry. Then the author puts forward specific strategies and polices from the perspectives of legislation, supervision, informal rules, relevant measures and property rights. At last the author makes internal and external analyses of China's trust companies by using SWOT and then makes some advice on the development of China's trust companies in the current institutional environment.The paper is divided into three parts.Part I: The international comparison of trust industry and its reference for ChinaChapter 1 introduces trust's basic definition, functions, features and...