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Amended Trust Law Draft Does Not Affect Trust Companies
China's Trust Law Draft only stipulates the basic relations between trustors and trustees, while leaving out items on the trust industry, according to the amendment submitted to the country's top legislature Tuesday.
The draft was amended twice before being presented to the 21st session of the Standing Committee of the Ninth National People's Congress (NPC), China's top law-making body, Tuesday for examination and approval.
The conditions for including items regulating trust companies are not yet in place as the trust industry is still undergoing reform, said Zhang Xuwu, vice-chairman of the NPC's Law Committee.
The items on trust companies were ruled out of the draft in the 16th session of the Ninth NPC Standing Committee last year but a number of NPC delegates and insiders opposed this decision.
The People's Bank of China, the country's central bank, announced rules to regulate the business of trust companies early this year, in a bid to provide more experience for the Trust Law Draft, said the official.
The draft has revised items involving the establishment, modification, ending of the trusteeship and the rights and duties of the trustees.
The present draft rules that property that is limited for circulation by other laws and government rules, is now allowed to be trusted but with related government approval, while the original version banned such trust.
The Trust Law draft was first submitted for examination six years ago to the 23rd session of the Standing Committee of the Eighth NPC.
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