Legal Analysis On Trust Investment

In this thesis, the author tried to analyze some critical issues of"trust investment", such as the characteristic of trust investment, the effect of the"bottom profit clause"and the nature of the"tri-party supervision agreement"from both legal and demonstrative perspective. Through the study on these issues, the author wished to offer protection for the sound development of trust investment and provide some help for the legislation and judicial practice in China. The article comprises a variety of research methods such as comparative analysis, demonstrative analysis, text analysis, historical analysis and so on.The article mainly consists of the preface, the main body and the concluding remarks, amounting to about 35,000 words.The preface simply introduced the origin and meaning of trust investment; the reason why the author wrote the thesis and the research purpose of this article.Chapter 1 introduced the basic legal issues of trust investment. The author pointed out that the basic character and scope of trust investment from its definition and category. The novelty in this chapter is that by comparative analysis among four typical trust investment definitions, the author concluded that the typical trust investment in Chinese market is a concept of narrow sense.Chapter 2 analysed the legal nature of trust investment, which was the emphasis of the article, because the vagueness of the legal nature is the key point that draws dispute. Firstly, the author analysed the similarities and differences between trust investment and other similar systems, and concluded that the existing legal systems in China can not regulate trust investment in the market. Secondly, the author elaborated the basic theory of trust and opposite viewpoints about the nature of trust investment, and considered that trust investment should fall into the scope of trust. Finally, considering the status quo of trust legislation and financial supervision in China, the author suggested that trust investment should be regulated by legal reasoning and judicial explanation at the moment.Chapter 3 analysed the puzzles of trust investment in practice, which was also emphasized in this article, because it is the main purpose of writing this thesis. The author explored the legal effect of"bottom profit clause"and the"tri-party supervision agreement", and emphasized the former issue in particular, because it is the origin of disputes and embodied the conflict between the principle of autonomy and fairness. Such analysis consists of the interpretation of the effect of the"bottom profit clause", the comparison between the"bottom profit clause"in trust investment and that in other similar systems, and so on. The author also elaborated deeply on the"tri-party supervision agreement"in many aspects.Chapter 4 proposed advice for the improvement of the legal environment of trust investment in China from legislation and financial supervision perspective. Firstly, the author analysed the challenge to Chinese existing law resulted from trust investment, including challenge to the definition of trustee and the existing legislation mode in the field of financial supervision. Secondly, the author analysed the challenge to the financial supervision system of China, such as the disunity of supervision standard and the existing supervision institutions. Finally, the author put forward some advice on the improvement of legal environment of trust investment of China on three levels, respectively, legislation, supervision and judiciary.