Advanced Search

Related News

Home » Business » Finance

China’s trust firms see rising yield on red-hot equity market

By Vera Ye | May 6, 2015, Wednesday | Online Edition

CHINA’S trust companies saw the yield of their products rise to a record high in the first quarter after they boosted fund allocation in the red-hot equity market, according to an industry report.

The average yield of the trust products rose to 8.11 percent in the first quarter of 2015, up from 7.19 in 2014, the China Trustee Association said in a quarterly report released today.

Trust funds increased stock investment to capitalize on China’s surging market, with funds invested in stocks totaling 777 billion yuan (US$125 billion) in the January to March period, more than doubled from the 314 billion yuan a year earlier, data showed.

By the end of the first quarter, stock investments accounted for 5.77 percent of trusts’ total assets, up from 2.83 percent in the first quarter of 2014.

Assets managed by China’s trust firms continued to fall as the regulator keeps a tight grip on off-balance-sheet lending.

Assets under the management of China’s 68 trust firms reached 14.41 trillion yuan by the end of the first quarter, rising 22.85 percent year on year, said the report. The pace was slower than a growth of 34 percent in the first quarter of 2014.

“China’s trust industry is going through a transition with the priority being shifted to boost profits instead of blowing up asset scale,” said Zhai Lihong, head of the Trust and Wealth Management Research Institute of the Southwestern University of Finance and Economics.

“Slower asset growth can be a buffer for the sector to restructure business and optimize management,” Zhai said.

Profits made by China’s trust companies surged 33.73 percent year on year to 16.9 billion yuan, compared with an increase of 14.39 percent in the first quarter last year, data showed.

As of the end of first quarter, there were 425 projects that have repayment difficulties, involving funds of 97.4 billion yuan, up 24.77 percent from the end of last year.

Finance


 

Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend