Management Measures for Trust and Investment Companies

Issued: January 12, 2001

Effective: as of the date of issue

Issuing Authority: People's Bank of China (PBOC)

Main Contents: These Measures are issued for the purposes of enhancing the supervision and management of trust and investment companies (Companies), normalizing the operation of the Companies, and accelerating the healthy development of the Companies. It contains eight chapters, including 72 articles. The Measures provide clear rules on the establishment, reorganization, and termination of a Company. Also provided are other stipulations on the business scope, business rules, supervision and self-discipline of a Company. According to the Measures, in order to establish a Company, investors shall apply to the PBOC for approval and a License for Legal Person Acting as a Trusting Entity. Subject to the PBOC's approval, a Company may operate the following business: (i) capital entrustment business; (ii) operation of property entrustment business; (iii) operation of investment funds; and (iv) service as an intermediary. A Company shall not operate deposit business, issue bonds, or borrow capital and create any external debts. Furthermore, those Companies established before the issuance of these Measures should be liquidated and reregistered with PBOC. Procedures on how liquidation of such Companies should proceed are provided.