Research On The Risk Of Trust Wealth Management Products In China

Trust as an institutional arrangement; began in the United Kingdom; developed in the United States; they are all exists to meet the needs. In China; due to special historical reasons; the trust establishes because government institutional arrangements; rather than the needs of the market. On the one hand as the economy continues to develop; individuals and companies in the accumulation of wealth is growing;because of the negative interest rates;the strengthen of the regulation of the real estate industry;the low yields of the capital market;making the financial needs are not met. On the other hand,with the purpose of banks to circumvent credit control; Trusts has used to be a "channel" to establish a trust fund program to provide investors with a high-yield financial products; coupled with the unwritten provisions of the trust industry "rigid honor;" the bank the fact that credit is equivalent to the national credit is to let investors are convinced that trust financial products are high-yield; low risk or even zero-risk products.But in recent years events of the risk of trust products has frequent occurrence broken the ever wonderful dream of investors.In this paper; with the analysis of the classification of the trust products and the risk of the Trust’s financial products; and with co-integration test; VAR model to test the relationship of trust products and economic development; and there is a long-term stable relationship between trust wealth management products and economic development. Then this paper analyzes the causes of the risk of trust financial products; mainly from the dismatch of decentralized management and regulatory requirements,rigid honor,incomplete information and trust products in the secondary market is imperfect, lack of long-term effective mechanism of talents training. Trust companies should strengthen the communication with regulators, to adapt to the policy of preparatory period, buffer policy risk; the trust companies and China Trustee Association should strengthen the education of investors in order to improve the trust environment, reduce reputational risk; Reduce incomplete information to prevent credit risk;should build the secondary market of trust products to resist risks;the trust company should enhance the sensitivity of the market to reduce market risk; should also cooperate with training institutions, colleges and universities, establish long-term effective mechanism of personnel training management to prevent management risks.The paper discusses the risk of trust products performance and its causes and countermeasures in a systematic analysis, but how this risk timely reveal also need to set up a trust product risk early warning system, the article failed to do in-depth analysis, it will be the focus of research.