BIZCHINA / News |
China March trust schemes total 18, value US$212m(XFN-Asia)Updated: 2007-04-23 14:03 China's trust and investment companies launched 18 trust schemes in March with a total value of 1.64 billion yuan (US$212 million), data compiled by Use Trust Studio, a website focused on trust issues, said. In February schemes totaling 5.31 billion yuan were launched. Use Trust attributed the sharp decline to the glut of schemes launched in February and the general tendency for trust companies to shy away from new schemes in favor of raising funds for investment through cooperation with commercial banks. Trust companies are constrained by tight regulations in raising funds from the public through the trust schemes vehicle, whereas commercial banks are subject to much fewer rules, Use Trust said. The average value per trust scheme totaled 91.26 million yuan in March while the average scheme duration is 1.72 years, the data showed. The average expected return for one-year schemes stood at 4.81 percent, while the returns for two-year and over-two-year schemes reached 4.86 percent and 5.83 percent, respectively. More than 66 percent of the funds raised by the trust schemes, or 1.09 billion yuan, were earmarked for investment in securities, reflecting continued robustness in the country's stock markets, the data showed. (For more biz stories, please visit Industry Updates)
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