Kunming Trust
Encyclopedia
Kunming International Trust Co, established in 1993, is a Chinese trust company
based in Kunming
, Yunnan
. It is a relatively small firm in China which has several billion yuan (several hundred million dollars) of assets under management
but is the largest in the southwest province of Yunnan. Kunming Trust is currently controlled by the financial authority of the Kunming municipal government, which has agreed to clear the trust firm's debt.
Since 2006 Kunming Trust has been one of many to be targeted by the financial authorities to bolster China's trust companies, which were hit over the past decade by a series of bankruptcies and scandals.
Kunming Trust was ordered by China's central bank to carry out an internal overhaul after its operations ran into trouble, due partly to failed investments early this decade that involved the misuse of clients' assets, according to reports in China's official media.
In July 2008, the Australian bank Macquarie Group
planned to buy just under 20 percent of Kunming Trust. After spending over a year in negotiations, Macquarie is expected to hold management control and have the right to appoint senior executives at Kunming Trust, and it will work with other new domestic investors to restructure the firm.
Trust company
A trust company is a corporation, especially a commercial bank, organized to perform the fiduciary of trusts and agencies. It is normally owned by one of three types of structures: an independent partnership, a bank, or a law firm, each of which specializes in being a trustee of various kinds of...
based in Kunming
Kunming
' is the capital and largest city of Yunnan Province in Southwest China. It was known as Yunnan-Fou until the 1920s. A prefecture-level city, it is the political, economic, communications and cultural centre of Yunnan, and is the seat of the provincial government...
, Yunnan
Yunnan
Yunnan is a province of the People's Republic of China, located in the far southwest of the country spanning approximately and with a population of 45.7 million . The capital of the province is Kunming. The province borders Burma, Laos, and Vietnam.Yunnan is situated in a mountainous area, with...
. It is a relatively small firm in China which has several billion yuan (several hundred million dollars) of assets under management
Assets under management
Assets under management is a financial term used denote the market value of funds being managed by a financial instutition on behalf of its clients, investors, depositors, etc. This metric is a sign of size and success against competition...
but is the largest in the southwest province of Yunnan. Kunming Trust is currently controlled by the financial authority of the Kunming municipal government, which has agreed to clear the trust firm's debt.
Since 2006 Kunming Trust has been one of many to be targeted by the financial authorities to bolster China's trust companies, which were hit over the past decade by a series of bankruptcies and scandals.
Kunming Trust was ordered by China's central bank to carry out an internal overhaul after its operations ran into trouble, due partly to failed investments early this decade that involved the misuse of clients' assets, according to reports in China's official media.
In July 2008, the Australian bank Macquarie Group
Macquarie Group
Macquarie Group Limited is a global investment banking and diversified financial services group, providing banking, financial, advisory, investment and funds management services to institutional, corporate and retail clients and counterparties around the world...
planned to buy just under 20 percent of Kunming Trust. After spending over a year in negotiations, Macquarie is expected to hold management control and have the right to appoint senior executives at Kunming Trust, and it will work with other new domestic investors to restructure the firm.
Services
- equity investment
- insurance
- securities broking
- asset management
- private equity
- indirect fund-raising for domestic enterprises