The Evaluation About The Financial Risks Of Trustee Corporations In China

As the managed asset scale beyond insurance industry during2012, Trusteeindustry became the second important part of China financial system. Therefore,the trustee corporations developed healthy and stably are crucial to China’sfinancial sector. Firstly, we talked about the classical theories of financial riskmodels and analyzed the specialties of trustee corporations financial risks in China.Secondly, we discussed the difference of trustee industry in china and aboard.There are lots of differences in operation mechanism, business organization and thetrustee law, which would bring financial risks to Chinese trustee corporations in thefuture.Third, we set up financial risks evaluation system for Chinese trusteecorporations. The evaluation system was based on the classical financial risk modeland the special environment of China. We had an empirical study on the trusteecorporations in China and concluded that the financial risk of the trusteecompanies in China depend on the company’s own risk and systemic risk factors.Finally, under the conclusions of empirical analysis, we proposed preventionstrategies for the trustee corporations from corporation and industry aspects.