Analysis Of The Competitiveness Of China's Trust Companies

Since the resumption of business,the trust industry has experienced reform and development in the past 40 years and has now established a relatively stable development situation.Whether it is the increase in scale,the growth of income,or the optimization of the structure,there have been very significant changes.However,in the complicated financial market environment,if you want to maintain a strong and stable position,the competitiveness you rely on must be tested by the times.Under the current situation,the increasingly fierce competition in the capital market and the strengthening of supervision,it is necessary to consider and judge the competitiveness of the trust companies.Only outstanding competitive advantages will promote the long-term development of the trust companies.From the perspective of quantitative evaluation,this article selects the 2016 financial data of41 trust companies as the research object: Select representative indicators from the four aspects of company size,business management,risk control,and growth and development,and then build a competitiveness evaluation index system that includes 12 indicators.Late on,use factor analysis method and cluster analysis method to do empirical research on the trust company's competitiveness.At the end,it proposes countermeasures and suggestions on the development of the trust company from the perspective of the company and supervision.The results of factor analysis indicate that:(1)The overall competitiveness of China's trust companies is not strong,and the development of competitiveness factors is not balanced.(2)The performance of the profit factor is relatively good,while the scale factor performance is weak.(3)The profit factor has the most significant influence on the competitiveness of trust companies.The results of clustering analysis are:(1)Trust companies are divided into five categories,among which the number of the first type of trust companies is the largest,the overall ranking is relatively high,and the profitability and scale strength of the first type of trust companies are relatively strong.(2)The competitive advantage of the second type of trust company is not prominent,but there is a clear competitive disadvantage.(3)The ranking of the strengths of each factor of the third type of trust company is exactly opposite to that of the proportion of the variance in the empirical results of factor analysis,so the overall ranking of the third type of trust companies is behind.(4)There is only one trust company in each of the fourth and fifth categories.Since both companies have special advantages and disadvantages,they are self-contained.To sum up,we can see that the overall performance of China's trust companies' competitiveness is relatively weak,and each trust company has weak factors.In order to promote the development of the trust industry,companies should proceed from their respective weak factors,enhance factor competitive advantage,and at the same time pay attention to the innovation and optimization of product business,strengthen the company's business management and risk management capabilities,in order to enhance the overall competitiveness.