Research On Trust Financing Of Cultural Enterprises In China

As one of the pillar industries of China in the future,the cultural industry has a considerable potential for development and profitability.As the cornerstone of the cultural industry,cultural enterprises cannot develop rapidly without the support of financial capital.Due to the shortage of traditional mortgaged asset,the incomplete valuation system,volatility and uncertainty of product cash inflows,restrictions on financial capital flow in financial industry regulations,etc.,cultural enterprises are unpopular in the eyes of financial institutions.The trust company,as the only financial institution that can be directly invested in money market,capital market and entity field,has high degree of flexibility and freedom in business.Possessing particular advantages that other financial institutions do not have,the trust company is important to guide the capital into the cultural industry.This paper will focus on trust financing of the Chinese cultural enterprises.Based on the financing characteristics of cultural enterprises,this research will firstly analyze the financing difficulties of private cultural enterprises at different levels including the quality of financial reporting,the ability to resist risks and the dependence of financing channels,and compare the financing characteristics of public companies based on their financial information.The paper will then summarize the development of the trust industry in China and analyze the current situation of the Chinese trust companies from six angles,including geographical distribution,registered capital,trust assets,income structure,profitability,and risk management.The second chapter,simultaneously,combined with the characteristics of cultural enterprise assets and scale qualification,comparatively studies on the characteristics of trust financing,the linkage degree between cultural enterprises and trust financing.Then,based on the mature modes of trust business and the characteristics of trust financing of cultural enterprises and a case study,from the point of view of active management and passive management,the paper will summerize and construct some suitable financing models and transaction structures for the trust business of cultural enterprises.Moreover,in order to solve the problems related to model building and method application in the valuation process of cultural enterprises,the research,taking the most commonly used valuation methods as a entry point,makes a comparative analysis of the models and valuation methods,and provides a merging valuation reporting on a cultural and technology company in NEEQ(National Equities Exchange and Quotations).Last but not the least,combining theory with practice,the paper will attempt to provide measures and suggestions for the Chinese cultural enterprises to develop business of trust financing,from the perspectives of trust companies,cultural enterprises and government legislation.