On December 15, China Foreign Economy and Trade Trust Co., Ltd. (FOTIC) and Boston Consulting Group (BCG) held a joint press conference in Beijing for the release of the Report on China’s Trust Industry – Returning to the Origin, Serving the Real Economy, Kinetic Energy Conversion, and Transformation and Development” (hereinafter referred to as “the Report”). The press conference, which was supported by China Trust Association, commercial banks, securities companies, industrial enterprises, relevant trade associations among other cooperative agencies, attracted representatives from more than 80% of the trust companies in the industry. Major mainstream financial media contributed positive coverage.
It takes 6 months to compile the Report during which 63 in-house expert interviews were carried out, engaging a number of companies in the industry, and covering 55 topics across the front, middle and rear stages.
Over the past ten years, the trust industry in China achieved substantial progress in terms of scale and influence on the national economy, people's livelihood and financial market. However, confusion and challenges that are common to the whole industry go side by side as well as a result of the growing complex environment. The Report once again explores the future development of the trust industry at the crossroad by analyzing the following three key issues: First, what is the "origin" of the trust industry? Second, what are the opportunities that the trust industry should grasp in the future? Third, what is the source of the core competitiveness of the trust industry and the differentiated competitive mode? The Report points out that from a new starting point, the trust industry needs to return explicitly to its origin, explore the mode to serve real entity, embrace the challenge of kinetic energy conversion, and grasp the opportunities to transform and develop.
According to Mr. Yang Lin, co-author of the Report, Chief Accountant of Sinochem Group, President of SBU of Finance, and Chairman of FOTIC: "Over the past ten years, the trust industry grows fast in terms of sources of diversification, business structure, business model and support to real entity. The 19th CPC National Congress Report delivers the message to ‘deepen the reform of the financial system and enhance the ability to serve real economy.’ The trust industry will take more initiative to serve the national development strategy in the future, focus on the change of major contradictions in society, serve the real economy wholeheartedly and help meet people’s demand for a beautiful life. "
Mr. He Dayong, co-author of the Report, Partner and Managing Director at BCG and Head of the Financial and Insurance Business in Greater China, noted that, "In the face of the new environment in China where the economy is slowing down, financial regulations are tightening up and the market is becoming increasingly competitive, the trust industry is coming to the critical juncture of the transformation and development. The pressure of sustainable development should not be underestimated. How to build the core competitiveness of the industry will be the theme of the development of the industry in the coming years.”