The peoples congress of the Peoples Republic of China (the "PRC") recently passed a law on trusts (the "Law") which will come into force later this year. This is noteworthy for several reasons. Firstly, it is unusual for civil law jurisdiction to introduce a system of trust law. Secondly, there is a strong possibility that trusts will be used as a legal vehicle for the eagerly awaited new pension funds. Lastly, the trust is likely to impact upon the ownership of assets in Hong Kong by mainland based organisations.
For a review of the new trust law and how this will affect businesses in China, please click here. This will open a PDF in a new window.
