TITLE:
An Analysis Summary of Factors Affecting China’ Assembled Funds Trust Products’ Expected Return Rate
AUTHORS:
Xiongliang Peng
KEYWORDS:
China’s Trust Industry, Assembled Funds Trust Plan, Expected Return Rate
JOURNAL NAME:
Open Journal of Business and Management,
Vol.4 No.2,
April
22,
2016
ABSTRACT: Since China’s reform and opening-up policy, China’s national wealth has increased a lot, which
stimulates the rapid development of China’s trust industry. Among them, the assembled funds
trust plan attracts a large number of investors for its high returns. In this background, this paper
discusses the factors affecting China’ assembled funds trust products’ expected return rate. This
paper will explain the expected return rate of assembled funds trust under nine explanatory
variables, including four dummy variables of investing field, namely real estate, industrial &
commercial enterprises, basic industries and financial products; two features of assembled funds
trust products, which include three factors namely trust period, the trust scale, macro-economic
factors; CPI growth rate, M2 growth, benchmark interest rates of the medium-& long-term loan
interest rate. The author establishes a multivariate regression model after empirical analysis. According
to the empirical results, five explanatory variables including the longer period of the trust,
the trust scale, investment field in real estate, CPI growth rate and the benchmark interest rates of
the medium- and long-term loan interest rate, have a positive relationship with explained variable,
namely the assembled funds trust products’ expected return rate. Investing in basic industries, financial
products and M2 growth rate over the same period of last year, all these three elements
have a negative relationship with assembled funds trust products’ expected return rate. While investing
in industrial & commercial enterprises, it has no significant influence on the assembled
funds trust products’ expected return rate.