The Study Of The Dilemma In Trust Rigid Payment

Originated from "USE system" in Great Britain,Modern trust industry has grown rapidly after introduced in United States,took a further deep development in Japan.At this moment i t has become one of four most important economy component.As the first trust investment co rporation,the CITIC Group was founded in in 1979,marked as the start of Chinese trust indus try.The Chinese Economic Reform not only brought development,but also changed the econo mic structure.Particularly after 2007,along with high attention in real estate,investors had m assive passion in trust products.Trust market revenue burst from 3 trillion in 2010 to "18 trillion" by the end of 2016,making its way to the second largest component in economic market after banking.One key factor accounted for the high-speed growth in trust industry is bailed-o uttrust.Bailed-out trust,is when trust products expire,trust companies must return investment pr inciple and expected return.Even if there's risk in the product,trust companies still need tokee p their promise and act as lender of last resort.Under the environment of slowing economic growth,to achieve sound development,fin ancial supervisory and trust companies must understand the historical reason behind "bailed-o ut trust",in able to start legislation trust industry,enhance regulation.Hence,based of "bailed-out trust",this paper is aimed to help out the current stuckness,by analyzing trust products al ong with historical reasons and regulation policy.Advicing to improve legal system,regulatio n policy.Optimize top-level design,and improving trust companies' internal management skil ls.This is a case thesis,it is made up of three parts after introduction:First part,we take a look back to review the history of trust industry in China.Besides th e growth,this thesis analyzes the inner difference between foreign trust industry and initial Ch inese trust industry,which gives a theoretical support to later optimizing top-level design.Oth er than that,it summarizes the regulation policies,its develop directions and lack of regulation.Last but not least,a look into "bailed-out trust" plight.The second part,it illustrates the representative of China Credit Trust Company to p ayment case from three aspects,the representative of industry,time,and problem.Moreover,it introduces the China Credit Trust Company to payment case.Last,it looks into the r oot cause of this pay-off crisis.The third part,continued from the preceding part,discusses lowering the risk from "baile d-out trust".Mainly from improving legal system and regulation,Optimize top-level design,a nd improving trust companies' internal management skills.Currently there's a few approaches,one is taking over the trust product with equity fund,secondly,transferring to third parties such as affiliate companies.Thirdly,having third party taking over,and launch new trust products to replace the old one.Fourthly third parties offer f inancing parties loans.Fifth,affiliate companies.Trust companies are stuck in this "bailed-out trust".On one hand,licenses are of great value of trust companies,and credit is what investors care the most.Once there's a trust issue,these trust companies will no longer be able to start any further business.The decrease in economic credits is fatal towards economic institutions,on the other hand,"bailed-out trust" keeps the i nvestors passionate,sourced part of funds to a valid end.Supported real economy,accelerated the growth of trust industry and economic market.But to its essence,not only it goes against t rust industry essential features,it doesn't make sense to marketing rule.The pay-off risk it bro ught to the industry is fatal.