Research On Transformation And Development Strategy Of Changchun Trust Company

The Trust Law of 2001,having been put into effect,has seen China’s trust sector enter a period of standardized growth,As of the end of 2021,the industry-wide trust asset size was RMB 20.55 trillion.After the rapid development of the domestic trust industry from 2008 to 2017,with the release of the "New Regulations on Asset Management"(the "Guidance on Regulating the Asset Management Business of Financial Institutions")and "two suppression and one reduction"(compressing the scale of trust channel business,compressing the scale of irregular financing business,and increasing the disposal of risky assets both on and off the table),since the beginning of 2018,we have entered a downward cycle of negative asset scale growth,with project risks exposed,traditional business development restricted,and trust companies’ The "license bonus" no longer exists.For the sake of surviving and developing,trust companies have started to gradually make strategic transformation adjustments either actively or passively.Changchun Trust Co.,Ltd.is the only trust company in Jilin Province.The Jilin Provincial Department of Finance,acting on behalf of the Jilin Provincial Government,re-issued a financial license to the company in March 2009,with the China Banking Regulatory Commission’s approval.The company has a registered capital of 1.597 billion Yuan.Jilin Provincial Department of Finance holds 97.49% of the shares.Changchun Trust ushered in a golden stage of rapid development during2010-2014,with asset management scale once exceeding 100 billion Yuan.However,with the drastic changes in the market environment and regulatory policies in recent years,Changchun Trust failed to adjust its development strategy in time to cope with the changes,and the company experienced difficulties in its operation,not only the slow development of new business,but also the outbreak of risks in its stock business one after another.Based on the above situation,this article takes Changchun Trust Company as the research object,comprehensively analyzes the historical development and basic information of Changchun Trust Company,deeply explores its prominent problems in company operation,organizational structure,future development positioning,existing projects,and wealth management capabilities at the current stage,and analyzes Changchun Trust’s advantages in shareholder resources,license resources,and other aspects,as well as its single equity structure Based on the disadvantages of lacking professional talents and the opportunities and challenges brought to the company by specific changes in the financial market environment and regulatory policies,a SWOT analysis is conducted on Changchun Trust Company.Through comparison,suggestions for the selection of WO development strategies were proposed,And formulated targeted measures for Changchun Trust Company The strategic development goal is to establish a sound corporate governance structure,continuously improve asset management capabilities and wealth management levels,enhance core competitiveness,and gradually develop into a financial holding group with trust as its main business,while covering services such as futures,funds,securities,insurance,and commercial banks.By establishing a sound market operation mechanism and stable profit model,we aim to create a first-class high-end asset and wealth service institution.Starting from the perspective of equity structure,organizational structure,management system,and other sub sectors,provide relevant support for the company’s strategic transformation to ensure the smooth completion of the transformation.Provide feasible operational suggestions for the transformation of Changchun Trust Company from non-standard business to standard business,financing business to investment business,institutional business to personal business,and other specific business directions,thereby helping Changchun Trust improve its core competitiveness in the current wave of industry transformation,return to the origin of trust,and achieve sustainable development.As a financial enterprise belonging to Jilin Province,Changchun Trust’s trust business is rooted in Northeast China and radiates nationwide,and its smooth transformation and development will play a significant role in the health and stability of the overall financial market in Jilin Province and Northeast China.In addition,taking Changchun Trust as an example,the study of its strategic adjustment direction for transformation and development under the new situation can also serve as a reference for other domestic trust companies and even other financial industries to transform and develop.