Research Of Assets Management Model Under The Domestic Trust System

Modern trust has become the only system which connects capital market, currency market and industry market. It's a modern assets management system characterized by a fiduciary relationship in which one party, known as a trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary. The advantages of this system include tax reduction, bankruptcy isolation, flexibility of the system and trusting responsible standards.The Trust Law of the People's Republic of China has been adopted and entered into force in 2001. The enforcement of the Trust Law is the landmark of the establishment of the trust system in China. The trust industry therefore has been developing in a standardizing and regulating way. Accompanied by the improvement of the trust system and its manipulating system, the business model of assets management in China has also been consummated very well. The trust theory is often applied in the assets management nowadays, and the importance of trust as a legal relationship has been more and more obvious.This article overviews the development of the model of assets management in the trust system in China from different angles of fund management company, securities company, commercial banks, and trust company. For the trust companies, their functions and business models are reformulated by"the Measures for the Administration of Trust Companies"and"the Measures for the Administration of Trust Companies'Trust Plans of Assembled Funds"which revised by China Banking Regulatory Commission and came into force in February 2007. As a result, the trust companies have to start the business innovation and modify the assets management method and investment utilization model, which shall emphasize on rights and interests of trust fund. This article focuses on the main business directions of the trust companies in China, and try to analyze the problems of different assets management business which include qualification authorization, promotion methods, management methods and escrow requirement.