CBIRC Official Calls for Transformation of China’s Trust Sector

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A senior official from the China Banking and Insurance Regulatory Commission (CBIRC) has outlined plans for broad changes to the development model for the country’s trust sector.

Xiao Yuanqi (肖远企), CBIRC deputy-chair, said that in future the Chinese trust sector must “successfully achieve a transition in its model and more accurately position itself.”

“Whether or not the trust sector can achieve long-term healthy development in future will be decided by whether or not it can play a role in the financial system that it hard to replace, or even irreplaceable,” said Xiao at an online conference held on 18 May.

“Only when people have confidence in the trust sector and trust companies, will they be willing to confer assets to trust companies for management.”

Xiao flagged a focus on work in two key areas:

  1. Scientific categorisation of trust operations, and the division of trust operations into the three main categories of asset management, asset services and charity/ public benefit.
  2. Research and promotion of the regulation of trust companies based on category. Initial consideration has already been given to differentiated regulation of trust companies based on their regulatory ratings, resource endowments, and entrusted management and risk resistance capabilities.