China Trust Market Business Model And Risk Prevention Research

Trust is the trustee of the trust-based client will entrust their property to thetrustee, the trustee according to the wishes of the client’s own name, for the benefit ofthe beneficiary or for a particular purpose, manage or dispose of behavior. Kind oftrust can be divided into civil trusts, investment trusts and charitable trusts and so on.Trust has property management, fund investment, social welfare, as well asinvestment banking and intermediary services and other functions.Our trust business in1979with the launch of reform and opening up andrecovery, originally began operating as a policy tool, has yet to embark on the pathof normal development.This paper is divided into six chapters. The first chapter is the introduction,mainly to clarify the background and significance of the research, as well as foreignliterature review article seeks to achieve innovation.The second chapter is some basic theories about trust and trust industry risks.Including the history of the development countries trust industry and its definition ofthe concept of "Trust Law" under the trust; kind of trust, etc.; basic features of theTrust. In addition, from the perspective of both internal and external risks of markettrust and trusts are facing.The third chapter describes the trust market in our country has experiencedseveral large-scale development to rectify the current situation, and then use SWOTanalysis, from the strengths, weaknesses, opportunities and threats of the four-dimensional analysis of the external market environment of trust and trustcompanies. In addition, this chapter also cited the country trusts four main operating modes.The fourth chapter is the core content of the paper, mainly expounded China’sexisting trust market risks, and cited the case of Hainan trust companies from brilliantto bankruptcy, and thus the necessity of trust business risk prevention. Finally,internal controls and external supervision from two angles made effectivemechanisms for prevention of trust market risk.The fifth chapter lists the trust industry development course Britain, America,Japan and the three trust developed markets, both should learn from the advancedexperience, but also should avoid failures. Then through the Anglo-American trustmarket and China and Japan were compared obtained contribute to the developmentof China’s trust industry three inspirations.Chapter VI is the key in this article, is the basis of the previous chapters,innovation from the macro, miso and micro three dimensions put forward somecountermeasures to help the trust market risk prevention and healthy and orderlydevelopment of the country and recommendations.Of the Trust and the banking, securities, insurance and called the four pillars ofthe financial industry. Today, the bank is still a powerhouse, securities and insuranceindustries to catch up, and became a rising star. Moreover, China’s trust industry isstill feeling the stones, and did not play a real role. Our timely and relevantgovernment departments should improve relevant laws and regulations of the trust ofthe market, strengthen information disclosure, first create a healthy and orderlydevelopment of the external environment for the trust industry; Second, China ’s trustindustry should also be aware of the rapid socio-economic development of thisimportant historic opportunity to play their own virtual economy and real economylinks the unique advantages of long-term perspective of development, personneltraining, through active marketing efforts to expand the scale of trust assets, balancedregional development disparities, promote trust and wealth management concepts; Finally, the Trust should fully aware of the threats and challenges currently facing andactively respond to and improve the internal governance structure of a trust company,making it suitable for the needs of market economy, in addition to strengthening toimprove their risk management systems improvement and risk managementtechniques. Only the government, the trust industry and trust companies worktogether, take their responsibilities, can China’s trust industry have a more long-termdevelopment.