China's 11 Trillion Trust Market: Asset Leaders Among the Four Main Types of Trusts

My summary of 11万亿四类信托资产投向分布研究 with some commentary.

First is the Basic Industry Trusts. These are the trusts most favored by trust companies because the government will back these companies, risk is relatively low.

The first table shows the list of the top 5 trust companies by size of their basic industry trust assets. The second table lists the top 5 companies by basic industry trust assets as a share of total assets. (This is the same number on the right side of the first table). Yuan figues are in the ¥100 millions. CITIC leads with ¥299 billion in basic industry trust assets.

Next up the market segment everyone is focused on: real estate trusts. Same setup as above.

Zhejiang is far and away the leading candidate for a province wide housing market disaster. The greater Hangzhou area, counting surrounding cities that are large in their own right, is the epicenter of the provinces troubles. Although the numbers aren't large, two of the trust companies with the greatest exposure to real estate are the Hangzhou Industrial & Commercial Trust and Zhejin Trust—the Zhe stands for Zhejiang. The other firm to be concerned about is Zhongyuan: it has the second largest exposure and the second highest proportion of assets in real estate. Zhongyuan is headquartered in Henan province.

Next is securities trusts: stocks, funds and bonds. These trusts mainly invest in bonds because the stock market has done terribly and investors avoid stock market trusts. From the list it's clear that these are specialized products dominated by some smaller firms.

Finally there are the industrial trusts. These are mainly loans to industrial and commercial companies.

Several of the firms above are listed and CCB Trust is a subsidiary of China Construction Bank.

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