PRODUCT DIVERSIFICATION AND FINANCIAL INNOVATION OF CHINESE TRUST COMPANIES IN CHINA'S FINANCIALISATION

Abstract

ABSTRACTUniversity: University of ManchesterCandidate: YANG LIUDegree Title: DBAThesis Title: Product Diversification and Financial Innovation of Chinese Trust Companies in China's FinancialisationDate: September 2016 In this research project, I proposed two sets of research questions: 1) What is the role of finance, and the phenomenon of financialisation, in the growing Chinese economy? Furthermore, what role does the trust industry play in the financialisation process? 2) How do Chinese trust companies respond to the conjunctural conditions in the financialising economy that are created by regulation and unexpected internal and external events, such as the 2008 global financial crisis and the rise of discourse on shadow banking in post-crisis bank regulation? I conducted a literature review and presented my theoretical framework under the frame-conjuncture-bricolage framework, since diversification is a form of bricolage in the context of the regulation and reform of Chinese trust companies and the financialisation of the Chinese economy. I adopted a case study research design as an appropriate qualitative approach for this research. My findings support the conclusions that: 1) the financialisation and financial bricolage framework applies to the trust industry and trust companies in China; 2) conjunctural conditions in the financialising economy are created by regulation and unexpected internal and external events; 3) trust companies in China respond to conjunctural opportunities by taking bricolage in product diversification and financial innovation.By addressing both sets of research questions through the integration of the mainstream literature on diversification and the financial innovation framework, this study analyses the financialisation of the Chinese economy, conjuncture and financial bricolage in a non-banking industry (i.e., the trust industry) in an emerging economy (i.e., China) and, thus, contributes to the extension and enrichment of the scope of literature on financial innovation and financialisation. While prior research has not yet applied this framework to studying product diversification and financial innovation of the trust industry in China, my research can fill a gap in literature on the evolution of the Chinese financial system in addition to contributing to mainstream research on product diversification and financial innovation. Furthermore, my research also suggests that, the conjunctural perspective and financial innovation as bricolage could equip managers in financial sectors with more realistic analytical and practical tools.

Date of Award	1 Aug 2019
Original language	English
Awarding Institution	The University of Manchester
Supervisor	Ismail Erturk (Supervisor)