Analysis Of The Causes Of Bankruptcy Of Guangdong International Trust And Investment Corporation And Its Enlightenment

The promulgation of the "New Regulations on Assets and Controls" in 2018 marks a new stage in China's trust industry to enter a normative operation and unified supervision.After the rapid development in recent years,the trust industry has leaped to become the second largest financial industry in China,and the scale of assets is second only to the banking industry.As one of the four pillars of China's finance,under the constant changes of China's financial environment,the challenges faced by trust companies are even more severe.Coupled with the high barriers to entry,the company's layout is concentrated in the first-tier cities,and is not well known to the masses.In 2018,compared with the growth rate of the scale of trust assets in 2017,there was a slight decline.How to deal with increasingly complex risks and conduct good management and control is a major problem facing the further development of China's trust companies.Therefore,it is of great theoretical significance to warn Guangdong International Trust and Investment Co.,Ltd.as the research object of this paper.This study introduces the relevant theories of trust management,including egg basket theory,information asymmetry theory,and corporate governance theory.Taking the time of reform and opening up as the starting point,the development process of China's trust industry is divided into the stage of reorganization and exploration,and the stage of system regulation.The four stages of the regulatory standard stage and the transformation and upgrading.This paper expounds the development process of trust industry in China.In the period of rectification and development,the case of Guangdong International Trust and Investment Co.,Ltd.was introduced,and the reasons for the bankruptcy of Guangdong International Trust and Investment Co.,Ltd.were analyzed.In addition,the current situation of China's trust companies was analyzed,and some common problems were analyzed.Sound problems,imperfect internal control mechanisms and other issues,not only do not adapt to the rapid development of trust companies,but also difficult to play the role of avoiding risks.In response to these problems,several measures and countermeasures proposed for China's trust companies and relevant regulatory authorities are introduced from the perspectives of internal control and external supervision.Through the research in this paper,we can more clearly understand how Guangdong International Trust and Investment Corporation went bankrupt step by step,and established a negative example in the trust industry.Taking history as a guide,it sounded the alarm for the trust company's standardized operation.It provides a reference model for the supervisory authority to strengthen the supervision of trust companies,and provides case guidance for promoting the sustainable development of China's trust industry.Therefore,studying the case of Guangdong Trust and Investment Company in the current economic background has a certain reference value.