With the full support and close guidance of Shenzhen Municipal Government, CBRC Shenzhen Branch and our shareholders-China Resources and Shenzhen SASAC, the hard work of our staff and the efficient management policy of the Board, and under the background that Chinese economy continued growing and financial market and capital market flourished, our company¡¯s main management targets were not only reached but also exceeded, and our comparable financial indexes remained the leading position in Chinese trust industry. What is more important, in 2007 we made clear our strategy and target, perfected governing structure, promoted administration level, strengthened risk control system, and further improved our company¡¯s social impact and market competitiveness.
Review of managing achievements in 2007
1¡¢ Review of economic situation in 2007
With the overall opening up of Chinese finance industry and the remarkable development of the Chinese capital market, the Chinese trust industry was presented with numerous business opportunities for development. In 2007, according to the new administration regulations issued by CBRC, Chinese trust companies made great efforts to adjust their business structure and develop their trust business. Their performances were really remarkable. At the end of 2007, the trust asset scale managed by 54 re-registered Chinese trust companies was close to RMB 1000 billion.
The total net profit was close to RMB 14 billion, increasing by over 200%. The vigorous trust industry shows immense energy and a bright future.
The reasons for the Chinese trust industry¡¯s good development situation can be explained by the following. Firstly, China has gradually formed a meaningful capital market. There are various financial tools and investment means. The security market is entering a long cycle of prosperity. These factors present trust companies a great opportunity to develop security investment trust business. Secondly, the rapid growth of social and personal fortune and the diversion from savings to investment bring us various trust financing products. The social demand of personal assets management gives unique market opportunities to the trust industry, which fits in with our mission of£¢Managing customers¡¯assets under their trust£¢. Thirdly, the implementation of The Measures for the Administration of Trust Companies further guides and regulates trust companies, promoting the development of their trust business.
However, the Chinese trust industry faces greater competitive pressures. Owing to the trend of financial mixed operation, the assets management business is no longer the exclusive right of trust companies. Prevailing financing businesses operated by commercial banks, insurance companies, securities companies and fund companies have greatly impacted trust companies¡¯ similar businesses. This is especially true with regards the prosperity of private banking business operated by financial institutions of overseas and domestic, and the trend of commercial banks and insurance companies purchasing trust companies, the competition in assets management will be increasingly fierce.
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