A Study On The Impact Of China 's Trust Market Structure On Business Performance

Trust is one of the four biggest financial industries in our country, developing rapidly in recent years, since2008, the trust assets began to grow rapidly.By the end of2008, the trust assets exceeded one trillion yuan for the first time.Then, the trust assets always updated the record at the speed of one trillion yuan per year.During2010, the trust assets is more than the public funds for the first time, during2012, the trust assets exceeded the insurance industry.According to the data released by China’s trust industry association website, at the third quarter of2013, China’s trust assets achieved10.131464trillion yuan, increased by35.62%compared with2012, which is7.47trillion.67trust companies in the industry achieved a profit of38.984billion yuan,2.1706million yuan per person.The growth of the scale enables trust become the fastest industry in recent10years in financial industry, and it rises to the second financial industry only after Commercial Banks.On the surface, China’s trust market is gradually towards stability, but how the situation can impact the development trend of the trust industry in the future, whether the performance of the trust can be improved, these questions is still uncertain. Based on S-C-P theory some scholars all around the world are interested in studying the relationship between market structure and economic performance with a large number of empirical studies, from the result of those empirical researches, market structure, operating efficiency and economic performance are closely related. Based on the above perspective, this article tries to study the present situation of market structure of China’s trust and those existing problems, it also wants to consider the internal relationship between market structure and performance by empirical analysis, then it would explore whether the market structure has a certain impact on market performance, at the end, I will put forward some corresponding countermeasures in order to establish a perfect and effective business market environment expecting gradually improve trust companies、economic performance and enhance itsmarket competitiveness.At first, this paper studies the market structure of China’s trust, by means oftables and pictures the author descirbes the trust’s market and the developmenttendency from2009to2012with some elements such as market share (MS),market concentration, product difFerentiation.Then based on DEA model Iselected some appropriate indicators，with the help of DEAP2.1，calculated thecomprehensive efficiency, the scale efficiency the total factor productivity(Malmquist index)for those61trust companies. Finally with return on assets,the market share, market concentration, operational efficiency and irsk appetite,total capital, the place those company registered, using Eviews7.2to get a linearregression, by t test and F test to view the signiifcance of variable coeiffcient,finally we can get the conclusion that the relationship between market structureand business performance in trust is accordant with the "revised efficientstructure hypothesis".