A Study On Trust Industry Positioning And Business Structures Of China

Four pillars of modern finance system, including banking, securities, insurance and trust, of which the first three in our country is relatively mature in money market and capital market, and played an important role of financing, optimize resource allocation in the financial arena. However trust industry in China started late, and it faced a lot of twists and turns as a young industry in the early days, so in a very long time trust is in a weak position, and public awareness is so low that limited the expansion of trust industry.The essence of trust is " manage others’ money as entrusted" and it is a special property management system. After hundreds of years of evolution and development, trust has formed a sound management and operation system in western countries, while in China, the arrival of trust era doesn’t come out until the promulgation of first trust law in2001. Since the trust has the irreplaceable advantage both of flexibility of investing across different markets and of property isolation system, if we can get enough policy support to clear positioning and adjust reasonable business structures, it will help to promote the development of the trust industry, thus promoting further deepen the financial sector. Therefore, it is significant to study the trust industry positioning and business structures.This paper starts from the status of the trust industry, mainly concerns on analysis of the trust industry positioning and business structures, and points out existing problems. It indicates that vague positioning is caused by the lack of regulations positioning systems, and too much reliance on financial intermediation function makes the deviation of functional orientation. In terms of business structure it focuses on the operations violations of channel business which will easily lead to "shadow banking" risk. Finally, by studying the characteristics and experience of UK, the USA and Japan, it explores the merits of the development of China’s trust industry, and puts forward the recommendations for optimizing future positioning and business structures.