Trustee Business Innovation and Regulation

Author: Ding Jianchen / Wang Weidong (Editor-in-Chief)
Publisher:
Publish Date: 2003-10-01
Features: For a long time, China's "trust industry" had once fallen into a distorted development cycle due to the lack of corresponding institutional safeguards. Asset inflation, interest inflation, and fictitious capital were persistent problems in the entire trust industry. To rectify the situation, after five rounds of cleanup and regulation, the "One Law and Two Regulations" were formulated and promulgated, establishing a basic legal framework for trust activities in China, ending the trust industry's 20-year period of, and providing a strong legal guarantee for the sound operation and innovative development of the trust industry. At the beginning of the new century, China's trust industry stood on a new starting point, taking business cleanup and re-registration as an opportunity. Through the "beneficiary system with the separation of ownership and benefit rights of trust property, the establishment of a limited liability and bankruptcy isolation system based on the independence of trust property, and the risk disclosure and information disclosure system for fund trust," it further protected the safety of shareholders' assets and the stability of investors' expectations, gradually strengthening corporate governance and business innovation. The application of trust is as limitless as human imagination. Law is the cornerstone of a country's system, and innovation and regulation are eternal themes of the market economy. As one of China's four major financial pillar industries, the trust industry, with the promulgation and implementation of the "One Law and Two Regulations" and the basic completion of the governance and regulation of the trust industry, will undoubtedly usher in a more brilliant future through business innovation and standardization.