Trust Law Theory: The Legal Adjustment of the Development and Growth of China's Trust Market

Author: Wu Hong
Publisher:
Publish Date: 2003-08-01
Features: From the perspective of major developed countries in the West, commercial law or a commercial code is the basic legal basis for merchants engaging in commercial activities. France, Germany, Japan, and others all have commercial codes. Even in common law countries like the United Kingdom and the United States, there is a strong emphasis on drafting commercial codes or separate commercial statutes as written laws. The establishment and operation of modern market mechanisms cannot be separated from the role of commercial law. Operators need corporate law to enter the market; companies need securities law to raise funds; companies need contract law to conduct business operations; contracts need to be fulfilled, which requires negotiable instruments law; if companies cannot pay, there must be bankruptcy law as the basis for bankruptcy proceedings; and since business risks are high, insurance law is needed to diversify risks. With the development of modern markets, commercial functions have become increasingly specialized, leading to the emergence of many new areas of commercial law. Examples include financing leasing law, fund management law, trust law, futures law, guarantee law, agency law, and property rights trading law. If a country's economy lacks the regulation of such laws, it would be difficult to leverage the role of market resource allocation and establish a new order that meets the requirements of economic globalization.