Research On The Risk Feature And Measurement Of Chinese Trust

After five times of reforms, trust industry in China has returned to a normal way of its original business and developed fast. The sixth reform began at 2007, and a large number of trust products have been issued to the market gradually by domestic trust companies. After the international financial crisis, trust companies still did not let us down by going upstream under pressure. To a large extent, trust industry has become the forth largest financial sectors following banks, securities and insurance in our country.At the same time, trust industry in China also faces many problems at present, especially the aspect of risk control which is in a great danger of potential. This paper will provide a method of risk measurement through a systematic analysis of trust industry, trying to make some contributions to the risk control and provide theoretical guidance to the healthy development of trust industry in our country.This paper is made up by five parts. The first part is introduction, the background and meaning of this selected topic, the research framework and the key innovation of this paper will be introduced. The second part is the literature review, and recent study of risk control on trust will be summarized. In the third part, risks of trust are classified into systematic risk and nonsystematic risk. What's the realistic expression of the risk? What's the deep reason on earth? All of these questions will be answered in this part. In the forth part, a method of risk measurement will be provided. In the fifth part, some strategies to control risks will be worked out from the standpoints of internal, external, business and institution.