Full Coverages>Business>China Venture Capital Forum 2004>News
   
 

Trust products receive warm market response
By Sun Min (China Daily)
Updated: 2004-04-05 08:48

China's booming trust and investment business will soon have its own industry association, sources said.

"We received the approval from the Ministry of Civil Affairs for the launch of the association two weeks ago. Now we are only waiting for the final approval from the State Council," said Wu Dayong, vice-president of China Credit Trust Co Ltd and head of the industry association's preparatory committee.

He told China Daily last Friday that the China Banking Regulatory Commission (CBRC) had already given the go-ahead to the industry association earlier. So if things run smoothly, the licence will be granted in two to three months.

"The association will enhance self-discipline in the industry and communication with the public," Wu said.

The CBRC will also come up with more detailed rules on the procedure on issuing new trust products, he said.

China's trust and investment business is booming now after years of industry slow down which caused the shut down or merger of many firms in the sector and left only less than 60 qualified firms remaining.

As the regulatory environment is getting warmer, trust companies have quickened the pace in launching new projects over the past two years, many of which are real estate or financial trusts.

The Beijing International Trust and Investment Co, for example, has launched four trusts for public investors so far this year, including a bond investment trust that just started selling last Thursday, which has an estimated annual return of 4-8 per cent, company sources said.

Beijing-based China Credit Trust Co Ltd also issued three real estate trusts and a bank asset trust to the public last year and will distribute another 100 million yuan (US$12 million) real estate trust on Tuesday.

The new trust project, with a term of two years and an expected 4.9 per cent annual return for buyers, is expected to raise 100 million yuan (US$12 million) to finance the Flower City real estate project in southwestern Beijing.

Wang Yanbai, deputy general manager of Beijing Wannianhuacheng Real Estate Development Co, the developer of Flower City, said that more real estate developers are seeking investment trusts to raise funds since the central bank tightened credit for the sector last year.

The company is also planning a listing in Hong Kong or the mainland in three years, Wang said. But its present focus is to effectively run the first project.

Risk management, however, has been a major concern for such trust projects; whether developers can use the money well, maintain sufficient cash flow and realize the target of housing sales will decide whether they can pay back the borrowed money and interest in time, experts said. It is the same issue for other types of investment trust projects.

So far, most of the trust projects issued in China over the past two years have received warm market response, which reflects the growing demand among investors for more diversified investment tools, said Mao Zhirong, a researcher with the research institute of the Shenzhen Stock Exchange.

Low bank deposit interest rates and surging consumer prices also push more people to seek new investment opportunities.

Under such circumstances, real estate investment trusts, for example, will continue to develop, but the potential risks also require more attention, Mao said.

But instead of setting many boundaries and limits for the trust companies, regulators should introduce the market mechanism for innovation and encourage competition in the sector, he said.

Meanwhile, lured by the market potential in China, foreign companies are also heading in the trust business.

Insiders said that the State Council is reviewing applications from China National Cereals, Oils & Foodstuffs Import & Export Corporation, one of the biggest trade companies in China, to set up a joint venture trust and an investment company with a trust company in the United States and a financial institution in Hong Kong.

 
  Story Tools  
   
 
     
主站蜘蛛池模板: 韩国欧洲一级毛片免费| 一本到卡二卡三卡免费高| 色噜噜亚洲精品中文字幕| 狠狠躁夜夜躁人人爽天天不| 日本大片免a费观看视频| 天天做天天爱天天综合网| 免费在线视频你懂的| 老司机精品视频在线| 国产叼嘿久久精品久久| 竹菊影视国产精品| 国自产拍亚洲免费视频| jizzjizzjizz中国| 开心五月激情综合婷婷| 中文字幕影片免费在线观看 | JIZZJIZZ亚洲日本少妇| 怡红院亚洲红怡院在线观看| 久久久久无码国产精品不卡| 日韩精品无码免费一区二区三区 | tube欧美巨大| 性短视频在线观看免费不卡流畅| 久久久久大香线焦| 日美韩电影免费看| 久热中文字幕在线精品免费| 欧洲精品99毛片免费高清观看 | 亚洲二区在线视频| 欧美激情videos| 亚洲精品无码久久久久| 狠狠干最新网址| 你懂的在线播放| 秋霞午夜在线观看| 全部免费a级毛片| 精品午夜福利在线观看| 可以看女生隐私的网站| 美女和男人免费网站视频| 国产va免费精品高清在线观看| 被女同桌调教成鞋袜奴脚奴| 国产免费a级片| 青青草成人免费| 国产公开免费人成视频| 高中生被老师第一次处破女| 国产在线视频www色|