Trust Company Profitability Research In China

Trust which is one of the financial sub-sectors,is welcomed gradually by high-net-worth population.The Trust industry in China experienced six ups and downs,the legal system and regulatory regime of it has not yet perfected. Trust business is still changing.The profitability of Trust Company is not identified.At the same time, Banking、 Secutities、 Funds and other finacial institutions all began targeted the high-net-worth market of China,promoted their own financial products.In the face of such fierce completion from other financial institutions,Trust Company must enhance its core competitiveness besides rely on its unique advantages.The most impotant of core competitvness is profitability.This thesis mainly studied the Trust Company in the view of profitability.This thesis combined methods of standardized research and empirical research.It first defined the concept and elements of profitability of Trust company in China on the basic of the related theories.Then it studied the current situation of profitability of Trust company in China and pointed out the existing problems of it.After that,the thesis used the Factor Analysis method to do some reaserch on the profitability of Trust company in China by using the data of45Trust companies between2007and2009and drew some conclusions.From the quantitative perspective, the profitability of Trust company in China was poor In the end and need further improved.From the sustainability perspective, the profitability of Trust company in China performanced well,Trust business growed well.In the end,this thesis put forward some suggestions on the reform of the profitability of Trust company in China,such as the improvement of internal corporate governance and the product innovation.