Study On The Relationship Between The Chinese Trust Industry Development And Economic Growth

Since the "New Two Rules" promulgated in 2007, the China’s trust industry made a great achieved. As of December 2014, the trust industry assets under management have reached 13.98 trillion yuan, more than insurance, securities, funds, etc., and become the second largest financial assets under management. Although the regulatory framework and the rapid development of the financial system, make the trust company face challenges, but the trust industry play a cross-market, cross-trade and cross product unique system advantages in promoting economic growth. And in the future a period of time, banking and capital markets are still unable to fully meet the financing needs higher risk. In this background, this paper tries to study trust industry’s position and role in economic development.In this paper, starting from the concept of trust, based on China’s trust industry evolution path, divide to system characteristics, business model, regional characteristics, development motivation and restriction to introduce the characteristics of China’s trust industry. For the theoretical analysis in this paper, make the theory of financial intermediation and industry life cycle theory as a foundation, from the angles of enterprise and macro analysis to show how the trust industry influence the economic growth. Supported by these theories, this paper choose four municipalities as samples, using the method of co-integration analysis, verify whether there is a long-term and stable equilibrium relationship between the trust industry assets and regional GDP, the results show that the trust industry promote the economic growth, but have a quite different effects in different areas. At last, this article uses the error correction model, and the results shows that it makes an effective correction and adjustment in the short term.