Research On The Transformation And Development Of XS Trust

Since the emergence of China's trust industry,it has undergone several major rectifications.The number of trust companies has also been reduced to 68,and it is no longer easy to add new ones.With the introduction of "one law-two gauges",it also indicates that China's trust has laws to rely on,and the trust industry has begun to standardize operations.Although it started late,with the country's economic growth and the institutional dividend of the trust industry itself,the trust industry has developed rapidly.In order to rapidly increase scale and improve performance,most trust companies have focused on traditional trust businesses such as the business with banks,the business with LGFVs,and the business with real estate company.the major business mode is cooperating with banks.In the Central Economic Work Conference in 2017,Chairman Xi emphasized that "the prevention and control of financial risks should be given a higher priority." The keynote of strong supervision has also been set,which includes strengthening Macro-Prudential supervision and improving awareness and ability to prevent systemic risks.Under the premise of central policies,the China Banking Regulatory Commission issued the documents requiring major financial institutions to conduct active self-examination and rectification within a time limit.Documents are issued quickly and in large quantities.The contents of self-examination and rectification mainly include regulatory arbitrage,multi-layer nesting and high leverage in area of the interbank,investment and financial management businesses.Subsequently,“334” centralized rectification was carried out.In the context of the economic downturn and strong supervision,the traditional trust business has been greatly impacted.First,the business with banks was affected by policies and entered the ranks of rectification.The scale of the business with bank continued to decline.Secondly,the business with LGFVs has increased investment risks due to Government credit endorsements being banned.In addition,the financial institutions such as banks have also relaxed their access requirements for the business with LGFVs and the enterprise financing cost has been reduced.Finally,with the national real estate regulation and control,the real estate industry's risks have soared,especially for small and medium developers with tight capital chains.Due to the decline in the scale of traditional businesses,the overall income of the trust industry has also declined in recent years,and the transformation and development of the business is imperative.This article analyzes the economic environment of the trust industry,the policy environment in recent years,and competitiveness.It also analyzes the trust business composition,internal environment,external environment,and competition of the XS Trust Company.Through analysis,we will put forward targeted suggestions,for how to transform and develop innovative businesses for trust companies to adapt the changing market and financial environment;how to develop a diversified business to ensure the company's continued profitability;how to strengthen the stickiness of customers and investors;how Strengthening the company's internal information management and how to improve the professional level of employees,etc..Those forward targeted suggestions can provide reference for XS trust companies and other trust companies as XS.