By the end of the third quarter of 2016, China‘s GDP grew by 6.7% compared with the same period in previous year, economic stability continued, quality and efficiency of development improved, with positive factors accumulating. Indexes in the Main Business Data of Trust Companies in the third quarter of 2016 released by CTA suggest that the development momentum of China's trust industry always has a close relation with macroeconomic operation; the trust industry spares no time in seizing the positive changes in macroeconomic operation, and continuously expands its business space. Assets under management by the industry in the third quarter maintained growing trend, entering an"18 trillion era". Total profits realized a double-digit growth, trust companies'  business capabilities in business expansion and collaborative development had continuously improved, and the trust industry’s capital strength was on the upswing, laying a solid foundation for transformation of trust business in the future.

I.Upswing in assets growth

A. Trust assets‍

At the end of the third quarter of 2016, trust assets under management by 68 trust companies across China reached 18.17 trillion Yuan, increasing by 16.33% compared with the same period in previous year, achieving a double-digit growth once again. Such growth, on the one hand, practically reflects the basic economic dimension that China’s economic growth has good tenacity and resilience, on the other hand, shows that trust companies have firmly seized the market opportunities in demands from the real economy.

In terms of quarter-on-quarter growth rate, in the three quarters of 2016 were 1.72%, 4.28% and 5.09% respectively, which was a practical signal that the industry assumes a growth trend.

B.  Proprietary assets and equity

At the end of the third quarter of 2016, proprietary assets of trust reached 504.049 billion Yuan, growing by 20.65% compared with 417.794 billion Yuan at the end of the third quarter of 2015.

Investment had always been the major type of proprietary assets, totaling 376.306 billion Yuan in the third quarter of 2016, accounting for 74.66% of proprietary assets, up by 28.18% compared with the same period last year. Monetary assets were 48.685 billion Yuan, down by 10.74% compared with 54.545 billion Yuan in the third quarter of 2015, with its proportion in proprietary assets continuously declining, from 13.06% in the third quarter of 2015 to 9.66% in the third quarter of 2016. The proportion of loans in proprietary assets had been decreasing over the past few quarters as well, from 9.14% in the third quarter of 2015 to 6.36% in the third quarter of 2016.

Equity reached 413.043 billion Yuan, annually increasing by 15.89%. Paid-up capital maintains upward trend since the third quarter of 2015, reaching 192.939 billion Yuan, increasing by 18.76% over the previous year, with its proportion in equity significantly increasing, reaching 46.71% in the third quarter of 2016, higher than 45.58% in the third quarter of 2015.

C.Risk projects

There were 606 risk projects at the end of the third quarter of 2016, totaling 141.896 billion Yuan, increasing by 37.73 billion Yuan from the end of the second quarter. Among which collective trusts accounted for 53.67% and single trusts accounted for 44.87%. Non-performing rates were 0.78%, slightly dropping from 0.80% at the end of the second quarter. Overall risk of the trust industry is under control.

II. Performance

In the third quarter of 2016, as various policies and measures for stabilizing economic growth took effect, China's economy was on a favorable trend, as the signs of economic upturn were better than expected. A steadily growing economy is a favorable external environment for the trust industry's performance.

A.Operating performance

In the third quarter of 2016, operating performance of trust companies totaled 23.438 billion Yuan, dropping by 15.71% compared with 27.808 billion Yuan in the third quarter of 2015. Such reduction was primarily caused by the shrink of investment income, which was only 5.639 billion Yuan, down by 3.559 billion Yuan compared with 9.198 billion Yuan in the third quarter of 2015.Commission income from trust business was 17.543 billion Yuan, accounting for 74.85% of operating income. Interests were 1.365 billion Yuan, increasing by 10.98% annually.

Total profits reached 17.937 billion Yuan, with annual growth of 14.36%. Profits of per staff member reached 2.2003 million Yuan.

B.Profitability of trust assets

In the third quarter of 2016, the average annualized fee rate to trustees was 0.58% and the real annualized return rate for beneficiaries was 7.59%.  

III. Accelerating transformation

A. Non-discretionary trusts growing

In the third quarter of 2016, financing trusts were 4.02 trillion Yuan, accounting for 22.11% of trust assets; investment trusts were 5.85 trillion Yuan, accounting for 32.19%; non-discretionary trusts were 8.3 trillion Yuan, accounting for 45.71%.

B. Sources of funds 

Collective pecuniary trusts reached 6.33 trillion Yuan in the third quarter of 2016, accounting for 34.84% of trust assets; single pecuniary trusts reached 9.69 trillion Yuan, accounting for 53.33%; property trusts reached 2.15 trillion Yuan, accounting for 11.83%.

C.Target markets

In the third quarter of 2016, industrial and commercial enterprises, financial institutions, securities, infrastructures and real estates were still the major investment target areas.

Industrial and commercial enterprises had always been the no.1 welcoming target, attracting 3.81 trillion Yuan, with its proportion in pecuniary trusts reaching 23.74%.

Funds flowed to financial institutions reached 3.06 trillion Yuan, taking over 19.10% of total pecuniary trusts.

Securities attracted 2.84 trillion Yuan, with its proportion reaching 17.72%.

Investment in infrastructure investment reached 2.66 trillion Yuan, accounting for 16.60%.

Investment in real estates were 1.35 trillion Yuan, accounting for 8.45%, down by 0.51 percentage points compared with the same period in previous year.

IV. Planning for future

The trust industry shall pay high attention to the new round of scientific and technical revolution, which will speed up China's economic structure adjustment, and new investment opportunities are emerging. At the end of the third quarter of 2016, among 20 industries to which pecuniary trust flowed, 174.109 billion Yuan went to information, computer service and software industry, growing by 85.60% compared with that at the end of the third quarter of 2015, namely, 93.808 billion Yuan. Industries such as industrial internet, robots, aviation & defense industry, high-end manufacturing, bio-pharmaceuticals, and artificial intelligence will become new areas for implementing the integration of manufacturing and finance.