Evaluation And Comparison Of The Competitiveness Of China's Trust Companies

In recent years, with the continuous development of China's economy, the total trust assets managed by domestic trust companies is experiencing rapid growth. According to Wind Info, as of the end of 2015, the total trust assets of 68 trust companies has reached the scale of 16.30 trillion Yuan, making the trust industry became the second largest financial category, which is second only to banking industry. However, with the advent of the era of "pan-capital management", the series of new policies launched by SFC, CIRC and other regulatory authorities have loosen the scope of investment in financial industries, such as futures, insurance and securities companies, and accelerated the competition between "pan-capital management5' institutions. Meanwhile, in order to seize customer resource and market share, the competition is becoming fiercer in the trust industry.Therefore, under the current circumstances, it has great significance on strategy making, competitiveness enhancing, and health and stable development by using the relevant quantitative method to evaluate the competitiveness of the trust company.According to the disclosed annual report of 68 trust companies, the four-dimension competitiveness evaluation system, which is designed based on the capital management ability, profitability, risk management ability and growth ability, is used to perform systematic and comprehensive competitiveness evaluation between these companies. The results of the evaluation shows that Huarun Trust, Bank of communication Trust, Shanghai Trust, Pingan Trust, Xinye Trust, Huaneng Trust, Zhonghai Trust, CCB Trust, Citic Trust and Chongqing Trust have ranked top 10 with the highest scores.The following conclusion can be drawn through horizontal and vertical comparison of comprehensive competitiveness and various elements:(1) at the early stages of the trust company's development, it is not easy to balance each aspects of capability while the company is seeking rapid growth. (2) while the trust company is in one-sided pursuit of scale expansion and without balancing other capability development, it will eventually pay a price for the "extensive growth". (3) if trust company wants to obtain sustainable competitive advantage, it must balance the development of each aspects.