Abstract
The chapter describes rise of the Trusts in China and their role in Shadow Banking. It also describes the original Trust Investment Companies in the history of the PRC and their transformation into the Trusts of today’s China. It mentions the history of Citic and its founder, Rong Yiren, and the relationship with capitalism in China. The chapter analyzes the collapse of Guangdong Investment Trust and the rise of Trust assets from 3 trillion renminbi in 2007 to more than 12 trillion renminbi in 2012 and 15.8 billion renminbi by the end of 2015. It then mentions the rules governing Trusts and their ownership structure. The potential for default by Trusts and the impact on China’s economy from a systemic point of view are explained. It reviews the near default of the Credit Equals Gold Trust product and its recapitalization. It mentions the importance of Trust investments to Shadow Banking and the rise of Capitalism in China.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
We’re sorry, something doesn't seem to be working properly.
Please try refreshing the page. If that doesn't work, please contact support so we can address the problem.
Bibliography
Caixin, Investors in troubled trust product told they’ll be repaid, January 28, 2014.
Economist. Collapse of Gitic, January 14, 1999.
Kumar, L., et al. (1997). China’s non-bank financial institutions (p. 13). Washington, DC: World Bank.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2017 The Author(s)
About this chapter
Cite this chapter
Collier, A. (2017). Don’t Trust the Trusts. In: Shadow Banking and the Rise of Capitalism in China. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-10-2996-7_6
Download citation
DOI: https://doi.org/10.1007/978-981-10-2996-7_6
Published:
Publisher Name: Palgrave Macmillan, Singapore
Print ISBN: 978-981-10-2995-0
Online ISBN: 978-981-10-2996-7
eBook Packages: Economics and FinanceEconomics and Finance (R0)