| China International Trust and Investment Corporation(CITIC)was established in October 1979,which was marked as the beginning of China’s modern trust industry.Trust industry has stably ranked the second in the financial industry after 39 years of rapid development.The scale of trusteeship assets managed by trust companies reached 22.7 trillion yuan in 2018,which has far exceeded the scale of insurance industry.While its scale of trusteeship assets is increasing,trust industry faces some problems such as lack of core competitiveness and loss of development stamina.How to break through the bottleneck? Authorities of trust industry strived to make a consensus by reexamining its development path,that is to strengthen trusteeship assets while enlarging t he scale of trusteeship assets,and improve its development quality so as to promote economic development.But a lot of efforts need to be made to remove the obstacles of restricting the circulation of trust beneficial right in the domestic financial marke t currently.Trust beneficial right is the right of the beneficiary in trust relationship to request the trustee to pay the trust interest according to the trust contract.Trust beneficial right that is defined to be private in China’s laws and regulations leads to the restriction of the circulation of commercial trust beneficial right in the respects of imperfect transaction mechanism,inability to market trust products publicly,high access threshold to investors and decentralization of circulation channels.As a result,a lot of bad phenomena in the circulation market of commercial trust beneficial right emerged such as fake trust(called Li Gui Trust in China)and illegal separation of trust beneficial right,which are unfavorable to investors and by which the reputation of trust industry is debased,disturbed the order of financial industry and affected economic develo pment.Meanwhile,civil trust business develops so slowly that it cannot exert an effective impact on the system of trust property management,which limits the growth of trust industry.Therefore,the starting point and focus of this dissertation is to res earch on how to systematically design the circulation mechanism of trust beneficial right in order to reduce the barriers to circulation,reduce illegal phenomenon of circulation,standardize the circulation market of trust beneficial right,promote trust industry to return to the origin of "being trusted and managing assets on behalf of trustor" as well as improve the core competitiveness of trust companies,add the value of trust beneficial right,strengthen trusteeship assets to serve the real economy,and develop circulation market for economic effects that the circulation of trust beneficial right could generate further.The circulation mechanism of trust beneficial right refers to a system that clarifies the relationship between the participants(the parties involved in the circulation transaction,trust companies,regulator,etc.)and the objects(referring to trust beneficial right)under systems,rules and processes in the circulation market of trust beneficial right so as to make trust beneficial right circulate better.From the perspective of the participants’ needs under mechanism design,circulation mechanism can be classified into transaction mechanism(including valuation standards,quotation rules,distribution rules and payment rules)and supporting mechanism(including policy and law mechanism,tax mechanism,risk prevention mechanism and circulation channel).The transaction mechanism is designed aiming at standardizing the transaction rules of circulation market,which is embodied in meeting the requirements of participants in circulation market for setting incentive compatibility constraints and participation constraints,and maximizing the expected utility of participants.The design of supporting mechanism aims at meeting the regulatory requirements,setting up a standardized and transparent circulation market,and reducing regulatory costs,which is mainly embodied in regulator’s setting of participation constraints of circulation market and standardizing the mechanism design of circulation market at the institutional level.The research route of this paper is to analyze the economic environment of the circulation of trust beneficial right at home and abroad,the current situation and the causes to the problems of China’s circulation mechanism,and the necessity to optimize the circulation mechanism;to put forward the design idea of the circulation mechanism of China’s trust beneficial right by comparing the circulation of trust beneficial right at home and abroad;to systematically design the circulation mechanism in line with the characteristics of China’s trust beneficial right;and finally to put forward policy proposals and follow-up research directions.This paper is mainly divided into three parts including horizontal and vertical analysis of the circulation of trust beneficial right,the circulation mechanism design of trust beneficial right,and the conclusions and proposals.Firstly,this paper,in order to design the circulation mechanism of trust beneficial right in accordance with China’s national conditions,analyzes the circulation of trust beneficial right in the context of the development of foreign trust industry by contrast with Britain where civil trust originated,the United States with developed commercial trust and Japan that belongs to the same continental law as China.According to the theory of institutional change,the historical context of the circulation development of trust beneficial right in China is teased out deeply and thoroughly.There are three stages concerning its circulation development,which respectively include the government-led financial support stage,the development stage of channel business affiliated with banks,and the stage of circulation of trust beneficial right led by trust companies.The paper theoretically analyzes the causes to the problems of China’s circulation mechanism further in combination with its current situation at home,which provides the base for mechanism design.In terms of the vertical explanation of the circulation of trust beneficial right,this paper analyzes its positive effects on the development of trust industry under transaction cost theory and property rights theory.The circulation of trust beneficial right can promote civil trust to develop to return to the origin of trust and optimize the structure of trust business;it can improve the circulation level of commercial trust beneficial right,promote long-term investment and give impetus to serve the real economy as well as reduce efficiency loss caused by obstacles in circulation of trust beneficial right and reduce transaction cost;and it can make market allocate resources well.Based on the historical data of the development of trust industry,this paper collects and counts the provincial panel data,and concludes through empirical test that the development of trust industry has a significant and positive effect on economic growth.Both the per capita GDP growth rate and GDP growth rate will increase by 0.0008% when the scale of new collective capital trust increases by 1%(the scale of new collective capital trust is the indicator reflecting the development of trust industry).It can be drawn from the analysis of the conduction mechanism that the circulation of trust beneficial right is helpful to push trust industry to develop well and its development will promote economic growth further.Thus it shows that the circulation of trust beneficial right has macroeconomic effects.Optimizing the circulation mechanism of trust beneficial right is conducive to standardizing circulation market,reducing barriers and disorders of circulation and exerting the economic effects of trust beneficial right further.It is pointed out in the paper that it is quite necessary to optimize the circulation mechanism of trust beneficial right in China through horizontal comparison with that in other countries and by vertical analysis of its developing history in China.The general idea of this paper for optimizing the circulation mechanism of trust beneficial right in China is abstracted below: trust beneficial right should be classified according to its nature;circulation market should be unified and transaction should be classified;civil trust should be developed vigorously to return to the origin of trust;the circulation mechanism of commercial trust beneficial right should be improved to give its full play to investing and financing.The second part of this paper(Section 4,5 and 6)mainly discusses about how to design the circulation mechanism of trust beneficial right.With regard to the top-level design of circulation mechanism,this paper puts forward the guiding ideology that trust beneficial right is classified according to nature,valued and transacted by classification.It unifies circulation market and its circulation channels are circulated according to different levels.Among them,the classification of trust beneficial right by nature is the premise of circulation mechanism;the design of transaction mechanism is the core of circulation mechanism;the supporting mechanism(including policy and law mechanism,tax mechanism,risk prevention mechanism and circulation channel)is the infrastructure of circulation mechanism,which can guarantee transaction mechanism to operate effectively.This paper probes into the design of transaction mechanism.Based on financial market microstructure theory,this paper analyzes transaction mechanism of circulation market of trust beneficial right,in which periodic auction mechanism can be applied.Then,the paper discusses the benchmark models of mechanism theory and auction theory(auction theory is the branch of mechanism theory).Based on auction theory,the hypothesis of benchmark model is extended to study the transaction mechanism designs of circulation market of civil trust beneficial right and commercial trust beneficial right respectively.The circulation of civil trust beneficial right,which is regarded as an important category in trust beneficial right,can best reflect the origin of trust industry "being trusted and managing assets on behalf of trustor".The transaction mechanism of circulation market of civil trust beneficial right is studied based on multi-attribute reverse auction theory,and is designed by combing incentive compatibility constraints with participation constraints to maximize the expected utility of civil trust trustors and trust companies(as bidders).The optimal bidding strategy of trust companies is deduced through theoretical modeling,and the conclusions that are consistent with reality are made as follows: when the number of trust companies(as bidders)increases,the service quality of trust companies will improve and the commission fee will be reduced accordingly;the expected revenue of trust companies will reduce,but the expected utility of trustors will increase.When trust companies become more professional,their quotation for commission charge will decrease correspondingly and their expected revenue will increase.Meanwhile,the expected utility of trustors will increase as well.Based on the theoretical model,this paper takes family trust as an example to resolve the optimal bidding strategy of trust companies,which can validate the conclusion of the theoretical model further.The transaction mechanism design of circulation market of commercial t rust beneficial right that is regarded as the second largest category in trust beneficial right is quite different,which is studied based on auction theory of divisible goods and double auction theory,and designed by combining incentive compatibility con straints with participation constraints and budget constraints to maximize the expected revenue of market participants.The optimal distribution rules and payment rules of circulation market of commercial trust beneficial right are deduced through theoreti cal modeling.The standardized evaluation process of commercial trust beneficial right and the optimal distribution and payment rules of circulation market are further illustrated by the transaction cases of collective capital trust.Trust companies as important participants play a leading role in the circulation market of commercial trust beneficial right,and take the roles of market organizers and market makers.The position of these two roles can be regarded as the direction of trust companies for trans forming and upgrading in the future.Market makers can reflect the professional advantages of trust companies better.Therefore,the optimal quotation strategy of trust companies is deduced in this paper based on the competitive bidding model of market makers by combing the risk preference characteristics of trust companies.At the end of the paper,a basic conclusion is extracted and policy recommendations are put forward,in which its main contributions,research limitations and follow-up research directions are pointed out as well.This paper mainly contributes to analyze the economic environment of the circulation of trust beneficial right and the necessity for optimizing the circulation mechanism through the development background of trust industry both at home and abroad,to design the circulation mechanism systematically,and to expand the classification research on making benchmark model of auction theory to be applied in the transaction mechanism of circulation market of trust beneficial right. |
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