Trust Product Innovation And Product Competitiveness Evaluation

With monetary policy from "moderate liberal" to "stable", enterprises eager to get other financing ways rather than traditional bank loans; the stock market high dive and the regulation of the housing market deepens, making investors looking for new investment channels. In which all of China trust industry, with their own efforts and innovation in the continuing economic recovery in their own development to achieve a breakthrough. Product distribution and pattern of China Trust Industry are quietly changing. Based on the above changes of domestic macro-economic background in financial instruments structure and its impact on the trust, the trust funds of various types of products of the characteristics and comparative advantages as well as current innovations made and evaluated, it has a real significance.The title of this thesis is'Assessment of Trust Innovation and Competition'. With the current capital market characteristics, the author starts materials gathering and literature review from competition theory, financial factors'impact on product yield, liquidity and finance innovations. Furthermore, the author summarizes the concept of Trust and current development of Trust Industry both domestic and overseas and then details China Trust industry and competition status. The author also notify that financial innovation research should be stemmed from financial factors study and then makes analysis of these factors, such as term structure and cash flow distribution as well as liquidity. Rooted from Desai & Low Model, the author names these financial factors as eigenvectors and turn to cluster analysis for help to evaluate Trust product innovation degree and propose a "non-dimension-added innovation" concept and provide explanations on the distance between theoretical innovation degree and practical innovation degree. Afterwards, the author proposes a "Unit Cycle" concept while evaluating the non-quantitative variables. Thanks to Principal component analysis, the author concludes that yield cash flow distribution, liquidity, risk control skills and geographic factor play a main role on rating Trust product competition. Hereinafter, the author produces some policy suggestions such as enlarging investment channels, establishment of secondary markets and strengthens the whole Trust industry risk management ability.