Research On The Impact Of Overseas Participation On The Operating Performance Of China's Trust Companies

When China joined the WTO, China had promised to fully open the financial sector in 2006, although not explicitly involved in the trust industry, but with the gradual opening up of the financial markets and the rapid development of trust industry, trust industry was widespread concerned by foreign institutions following the foreign investment introduction of banks as its financial, industrial and other characteristics of many areas of investment, China's trust industry opening is on the verge of breaking out. Beyond that, regulators encourage and promote trust industry seeking foreign investors, in order to fundamentally change the governance structure of the trust industry, enhance risk control capacity, improve business performance and enhance overall competitiveness, this is also an opportunity for overseas equity trust company. As of the end of 2015, there were 10 among the country's 58 trust companies have furniture foreign shareholders background. Compared to a large number of overseas equity participation in the banking industry, China's overseas equity trust industry research is still less, not to mention the introduction of foreign investment in the trust company operating performance of the special research. Based on the above background, this paper focuses on the analysis of the impact of foreign equity participation on the performance of trust companies under the premise of the quantitative analysis of the performance of trust companies.This paper expounds the influence of foreign shareholding trust company business performance from the perspective of theory, based on this, selected seven trust companies who have foreign shareholders background and five trust companies who do not have foreign shareholders background as the research sample, using the factor analysis method to calculate their business performance, from the two levels of vertical and horizontal analysis of exit effect of equity participation to the performance of the trust company. Subsequent make the operating performance as the explained variable, make the accounted for foreign ownership and the first shareholding ratio, ownership concentration degree, foreign directors for the ratio and foreign institutions types as explanatory variables, construct a linear regression modelfor quantitative analysis of the impact of foreign equity participation on trust companies' business performance.Through the empirical analysis, it is concluded that: the foreign equity trust company has a promoting effect on the improvement of the operating performance.The individual differences of the foreign capital has different influence on the operating performance. In addition, some problems highlight when trust company introducing the foreign capital, on the basis of this, this article puts forward some relevant policy suggestions from three aspects: the trust companies, government regulators and the public.