China's trust companies profited from their investment in the red-hot equity market when their product yield rose to a record high in the first quarter, said an industry report.
The average yield of the trust products climbed to 8.11 percent in the first three months this year, up from 7.19 percent in 2014, the China Trustee Association said in a quarterly report released yesterday.
Trust funds invested more in stocks to capitalize on China's surging market, with 777 billion yuan (U.S.$125 billion) injected in stocks in the January-March period, more than doubled from the 314 billion yuan a year earlier, data showed.
By the end of the first quarter, stock investments accounted for 5.77 percent of the trusts' total assets, up from 2.83 percent in the first three months of 2014.
Meanwhile, China's 68 trust firms managed assets worth 14.41 trillion yuan at the end of the first quarter, up 22.85 percent year on year, the report said. The pace was slower than the 34 percent growth in the first quarter of 2014.
"China's trust industry is going through a transition with the priority shifting to boost profits instead of increasing asset scale," said Zhai Lihong, head of the Trust and Wealth Management Research Institute of Southwestern University of Finance and Economics.
Profits made by the trust companies surged 33.73 percent year on year in the first quarter to 16.9 billion yuan, compared with a 14.39 percent gain a year earlier, data showed.