Research On The Profit And Risk Of Trust Industry In China

Trust business have different classification according to different standards, This article classify the trust business in China according to standards of source of trust assets, investment field of trust assets, the way to use trust assets and management style of trust assets., and then carry on research on the profit and risk of trust industry in China based on the business type.To carry on research on the profit, this article selects the panel data of 35 trust companies in China from 2008 to 2014 as sample; use the net profit of trust company as the dependent variable, and the asset size of different trust business as independent variables, then makes empirical analysis with multiple linear regression models from different perspective. The conclusions suggest that the single fund trust business, the trust business invest in the field of financial institutions and the securities market, financing trust business and the trust business managed passively has small influence on the net profit of trust company. The collective money trust and trust business manage property, the trust business invest in the field of real economy, investment trust business and the trust business managed actively has larger influence on the net profit of trust company. In terms of risk, this paper mainly carry on research by the method of qualitative analysis, think that China’s trust business mainly bring law risk, policy risk, market risk, credit risk, operational risk, liquidity risk and investment risk for trust company. The profit of the financing trust which is managed passively is getting lower with the disappearance of system advantage, but the credit risk and policy risk it bring is increasing, the existing profit model of trust industry in China is being challenged, so we must speed up the investment trust which is managed actively to increase profit, at the same time, it is important to pay special attention to prevent the legal risk and investment risk.