A report in China Economic Net, one of the most respected Chinese economic news portals, focuses on the state of the current trust industry in China and seeks answers regarding the future of the industry.
According to the article published in March, 2013, the volume of trust assets in China grow at a rate of 50% since 2009. This growth catapulted trusts past the insurance industry in terms of volume, creating a historic shift in the economic focus of the Country.
According to Qian Jun, President of Huabao Trust, “The accumulation of the people’s wealth results in needs for wealth management.” He believes that the Trust Industry provides this necessary service for the growing sector of newly wealthy individuals and corporations. Although Mr. Qian Jun does not believe that the 50 percent growth is not sustainable, he believes that the industry will continue to grow at a significant percentage over the next decade, with the quality of the professional wealth management and the services provided determining the continued success of the Industry.
Lu Qiang, general manager of China Resources says that “In the next decades, with deepening reform of the finance industry and liberalization of interest rate, more resources will be transferred to the “broad assets” management field of direct financing, and Trusts will certainly be one of the main forces.” Additionally, he states that “The springtime of China’s wealth management has just come… and this is just the beginning.”
The article continues by stating that China’s wealth management market is becoming more diversified, and needs to continue to do so. Trust companies need to strengthen their risk management abilities, to explore high quality wealth management products and to introduce innovative wealth management strategies in order to ensure sustainability and long term competitiveness.
As China’s economy continues to grow, so too do the Trust and Wealth Management Industry.
