Article 1 This law is formulated in order to regulate the trust relationship，
normalize trust acts， protect the lawful rights and interests of the parties to
a trust and promote the healthy development of the trust business.
Article 2 Trust in this Law refers to the act in which the trustor， on the basis
of confidence on the trustee， entrusts certain property rights it owns to the
trustee and the trustee manages or disposes of the property rights in its own
name in accordance with the intentions of the trustor and for the benefit of the
beneficiary or for specific purposes.
Article 3 This Law applies to the trustor， trustee and beneficiary （hereinafter
referred to in general as parties to a trust） conducting civil， business or
public trust activities within the boundaries of the People's Republic of China.
Article 4 Trustees engage in trust activities by way of fiduciary institutions，
the specific measures for the organization and management of which are to be
formulated by the State Council.
Article 5 When conducting trust activities， the parties to a trust must abide by
the laws and regulations， comply with the principle of willingness， equality and
being honesty and trustworthiness， and must not harm the state interest and the
social public interest.
第二章 信托的设立Chapter 2 Establishment of a Trust
Article 6 The establishment of a trust shall serve a legitimate purpose of
Article 7 To establish a trust， there must be certain trust properties and the
properties must be properties lawfully owned by the trustor.
Property in this Law includes lawful property rights.
Article 8 Written form shall be adopted for the establishment of a trust.
Written form includes trust contracts， wills or other written documents as
provided by laws and regulations.
A trust established in the form of trust contract shall come into existence when
the trust contract is concluded. A trust established in other written forms
shall come into existence when the trustee promises to accept the trust.
Article 9 The written documents by which a trust is to be established shall
provide the following information：
1） Purposes of the trust；
2） Names and addresses of the trustor， the trustee and the beneficiary；
3） The beneficiary or the scope of the beneficiary；
4） Scope， type and status of the trust property；
5） Ways and methods by which the beneficiary get the trust proceeds；
Apart from the information listed in the above paragraph， duration of the trust，
methods of management of the trust property， remuneration of the trustee，
methods of designation of new trustees， reasons for terminating a trust and
other information may be provided.
Article 10 Where trust property shall be registered according to the provisions
of laws or administrative regulations for the establishment of a trust， such
property shall be registered.
If the trust registration fails to be made as required in the previous
paragraph， it shall be made up later； the trust shall be invalid if no make-up
trust registration is effected.
Article 11 The trust is void under any of the following circumstances：
1） The purposes of the trust are against laws or regulations， or harm the public
interest of the society；
2） The trust property can not be identified；
3） The trustor establishes a trust by using illegal properties or properties
that are prohibited by this Law from being used to establish a trust；
4） Establishing a trust especially for the purpose of litigation or of demanding
the payment of a debt or loan；
5） The beneficiary or the scope of beneficiaries cannot be identified； and
6） Other circumstances provided by laws and regulations.
Article 12 If the trust a trustor establishes has harmed the interests of the
creditor， the creditor shall have the right to apply to the people's court for
canceling the trust.
Trust benefits already obtained by a goodwill beneficiary shall not be affected
if the people's court cancels the trust according to the provisions of the
The right to apply shall extinguish if the creditor doesn't exercise it in one
year since he knows or should know the reasons for cancellation.
Article 13 The establishment of testamentary trust shall abide by the provisions
of the Succession Law on testament.
If the person appointed by the testament refuses or doesn't have the capacity to
act as trustee， the beneficiary may appoint other trustees；
if the beneficiary is a person without civil capacity or a person with limited
capacity， his guardian shall appoint the trustee on his behalf according to law.
If there are other provisions on the appointment of the trustee in the
testament， those provisions shall be followed.
第三章 信托财产Chapter 3 Trust Property
Article 14 The properties that the trustee obtains as a result of accepting the
trust are trust property.
The properties that the trustee obtains by way of managing， utilizing， disposing
of the trust property or by other means shall also be deemed as trust property.
Properties forbidden to circulate by laws or regulations shall not be used as
Properties limited in circulation by laws and regulations may be used as trust
property with the approval of relevant departments in charge according to law.
Article 15 Trust property differs from other properties with which the trustor
hasn't established a trust. After the trust is established， if the trustor dies
or disbands according to law， or is canceled or declared bankrupt according to
law， and if the trustor is the only beneficiary， the trust shall terminate and
the trust property shall be deemed as his heritage or liquidation property；
if the trustor is not the only beneficiary， the trust shall continue to exist
and the trust property shall not be deemed as his heritage or liquidation
but if the trustor， as a joint beneficiary， dies or disbands according to law，
or is canceled or declared bankrupt according to law， the beneficial right of
the trust shall be deemed as his heritage or liquidation property.
Article 16 The trust property differs from the property owned by the trustee
（hereinafter referred to as inherent property for short） and shall not be deemed
as the inherent property of the trustee or become part of the inherent property.
If the trustee dies or disbands or terminates as a result of being canceled or
being declared bankrupt according to law， the trust property shall not be deemed
as his heritage or liquidation property.
Article 17 Trust property shall not be enforced except under any of the
1） The creditor has already gotten the priority of compensation from the trust
property before the trust is established and exercised the right according to
2） The debts incurred from the trustee's handling of the trust affairs and the
creditor requires the debts to be paid off；
3） The taxes that the trust property are due； and
4） Other circumstances provided by law.
If the trust property is enforced against the provisions of the preceding
paragraph， the trustor， trustee or beneficiary has the right to make an
objection to the people's court.
Article 18 The creditor's right obtained by the trustee through the management，
utilization and disposition of the trust property must not offset the debt
caused by his inherent property.
The creditor's right and the debt caused when the trustee manages， utilizes and
disposes the trust property of different trustors must not offset each other.
第四章 信托当事人Chapter 4 Parties to a trust
第一节 委托人Section 1 The trustor
Article 19 The trustor shall be a natural or a legal person with full civil
capacity， or other organizations established according to law.
Article 20 The trustor has the right to know how his trust property is managed，
utilized or disposed of and the income and expenses incurred therefrom， and has
the right to ask the trustee to make explanations.
The trustor has the right to consult， write down or duplicate the trust accounts
relating to his trust property and other documents relating to the handling of
Article 21 The trustor has the right to ask the trustee to adjust the methods of
management of the trust property if the methods prevents the realization of the
purposes of the trust or are not in accordance with the interests of the
beneficiary due to special causes that are not foreseen when the trust was
Article 22 If the trustee disposes of the trust property against the purposes of
the trust or causes losses to the trust property due to violation of the
management duties or improper handling of the trust affairs， the trustor has the
right to apply to the people's court for withdrawing the disposition； he also
has the right to ask the trustee to revert the trust property or make
compensation； if the transferee accepts the trust property though he is fully
aware that it is against the purposes of the trust， he shall return the trust
property or make compensation.
The right to apply as mentioned in the preceding paragraph shall extinguish if
the trustor doesn't exercise it within 1 year since he knows or should have
known the reasons for withdrawal.
Article 23 If the trustee disposes the trust property against the purposes of
the trust or is at serious fault when managing， utilizing or disposing of the
trust property， the trustor has the right to remove the trustee according to the
provisions of the trust documents or apply to the people's court to remove the
第二节 受托人Section 2 The trustee
Article 24 The trustee shall be a natural or a legal person with full civil
If there are other provisions on the requirements of the trustee in laws and
regulations， those provisions shall be followed.
Article 25 The trustee shall abide by the provisions of the trust documents and
handle the trust affairs for the utmost interests of the beneficiary.
The trustee shall fulfill his duties and perform the obligation of being honest，
trustworthy and cautious， and managing effectively.
Article 26 The trustee must not take advantage of the trust property to seek
profits for his own except getting remuneration according to the provisions of
If the trustee violates the provisions of the preceding paragraph to take
advantage of the trust property to seek profits for his own， the profits he
obtains shall be brought into the trust property.
Article 27 The trustee must not change the trust property into his inherent
property. The trustee must revert the trust property if he changes the trust
property into his inherent property； and the trustee shall bear the liability of
compensation if he causes losses to the trust property.
Article 28 The trustee must not make transactions between his inherent property
and the trust property， or make transactions between the trust properties of
different trustors， except that the trust documents prescribe otherwise or with
the approval of the trustor or the beneficiary， and make transactions based on
fair market price.
The trustee shall bear liability of compensation if he violates the provisions
of the preceding paragraph and causes losses to the trust property.
Article 29 The trustee must manage the trust property and his inherent property
separately and keep separate accounts， and must manage the trust property of
different trustors separately and keep separate accounts.
Article 30 The trustee shall handle the trust affairs in person， but if there
are otherwise provisions in the trust documents or there is no alternative， the
trustee may entrust others to handle the affairs on his behalf.
The trustee shall bear liability for the handling of the trust affairs by others
to whom he entrust the trust affairs.
Article 31 If there are more than two trustees of a same trust， they are joint
The joint trustees shall handle the trust affairs jointly， but if the trust
documents prescribe that some specific affairs shall be handled by the trustees
separately， those provisions shall be followed.
If the joint trustees have different opinions when handling the trust affairs
jointly， they shall follow the provisions of the trust documents； and if there
is no relevant prescriptions in the trust documents， it shall be subject to the
decision of the trustor， beneficiary or interested person of the beneficiary.
Article 32 The joint trustees shall bear several and joint liability if they
incur debts to a third party when handling the trust affairs. The declaration of
will made by the third party to any of the trustees shall have the same effect
to other trustees.
If any of the trustees disposes of the trust property against the purposes of
the trust or causes losses to the trust property due to violation of his
management duties or improper handling of the trust affaires， the other trustees
shall assume several and joint liabilities.
Article 33 The trustee must keep full records of the handling of trust affairs.
The trustee shall report the management， utilization and disposition of the
trust property and the income and expenses to the trustor and the beneficiary
regularly every year.
The trustee shall bear the obligation to the trustor and beneficiary of keeping
secret of the handling of trust affairs and the materials according to law.
Article 34 The trustee shall be responsible for paying trust benefits to the
beneficiaries within the limit of the trust property.
Article 35 The trustee has the right to get remuneration according to the terms
of the trust documents. If it is not prescribed beforehand in the trust
documents， supplementary terms may be made with the approval of the parties of
the trust after negotiation； the trustee must not get remuneration if no terms
are made in advance and no supplementary terms are made.
The amount of the remuneration agreed upon may be added or reduced with the
approval of the parties of the trust after negotiation.
Article 36 If the trustee disposes of the trust property against the purposes of
the trust or causes losses to the trust property due to violation of the
management duties or improper handling of the trust affairs， the trustee must
not ask for remuneration before he has reverted the trust property or made
Article 37 The trustee may bear the expenses and debts to the third party
incurred from the handling of trust affairs with the trust property.
If the trustee has paid in advance with his inherent property， he has the
priority right to get compensation from the trust property.
The trustee shall bear the debts to the third party or losses of himself
incurred from the violation of his management duties or improper handling of the
trust affairs with his inherent property.
Article 38 The trustee may resign upon the approval of the trustor and the
beneficiary after the trust is established. If there are otherwise provisions on
the resign of the trustee in public trust in this Law， those provisions shall be
The resigned trustee shall continue to perform the duties of managing the trust
affairs before the new trustee is appointed.
Article 39 The duties and responsibilities of the trustee shall end under any of
the following circumstances：
1） The trustee dies or is declared dead；
2） The trustee is declared as a person without civil capacity or a person with
limited civil capacity according to law；
3） The trustee is canceled according to law or is declared bankrupt；
4） The trustee disbands or loses legal qualification；
5） The trustee resigns or is dismissed； and
6） Other circumstances provided by laws and regulations.
When the duties and responsibilities of the trustee end， its heritor or the
manager of the decedent's property， the guardian or the liquidator shall keep
the trust property appropriately and assist the new trustee to take over the
Article 40 When the duties and responsibilities of the trustee end， a new
trustee shall be appointed according to the provisions of the trust documents；
if there are no relevant prescriptions in the trust documents， the trustor shall
appoint a new trustee；
if the trustor fails to appoint or doesn't have the capacity to appoint a new
trustee， the beneficiary shall make the appointment；
if the beneficiary is a person without civil capacity or a person with limited
civil capacity， his guardian shall appoint the new trustee on his behalf
according to law.
The new trustee shall inherit the rights and obligations of handling the trust
affairs of the former trustee.
Article 41 If the duties and responsibilities of the trustee end under any of
the circumstances listed in item 3） to item 6） of the first clause of Article
39， the trustee shall make reports on the handling of trust affairs and go
through handover procedures of the trust property and trust affairs to the new
The liabilities of the former trustee of the matters listed in the report shall
be relieved after the report mentioned in the above paragraph is recognized by
the trustor or the beneficiary， except that the former trustee did unreasonable
Article 42 If the duties and responsibilities of any of the joint trustees end，
the trust property shall be managed and disposed of by other trustees.
第三节 受益人Section 3 The Beneficiary
Article 43 The beneficiary is the person who enjoys the beneficial right of the
trust. The beneficiary may be a natural person， a legal person or other
organizations established according to law.
The trustor may be the beneficiary， and may also be the only beneficiary of the
The trustee may be the beneficiary， but must not be the only beneficiary of the
Article 44 The beneficiary enjoys the beneficial right of the trust since the
day on which the trust takes effect. If there are otherwise provisions in the
trust documents， those provisions shall be followed.
Article 45 The joint beneficiaries enjoy trust benefits according to the terms
of the trust documents.
If there are no relevant provisions in the trust documents concerning the
distribution proportion or the methods of distributing the trust benefits， each
beneficiary shall enjoy the trust benefits according to equal proportions.
Article 46 The beneficiary may waiver the beneficial right of the trust.
The trust shall terminate if all of the beneficiaries waivers their beneficial
rights of the trust.
If some of the beneficiaries waivers the beneficial rights of the trust， the
attribution of the abandoned beneficial right of the trust shall be determined
in the following order：
Article 47 The beneficiary who is not able to pay off matured debts may use his
beneficial right of the trust to pay off his debts， except that there are
restrictive provisions in laws， regulations or the trust documents.
Article 48 The beneficial right of the trust of the beneficiary may be
transferred and inherited according to law， except that there are restrictive
provisions in the trust documents.
Article 49 The beneficiary may enjoy the rights of the trustor prescribed in
Articles 20 to 23.
If the beneficiary has objections to the trustor when exercising the rights
mentioned above， he may apply to the people's court for ruling.
If the trustee conducts any of the acts listed in the first clause of Article 22
and any of the joint beneficiaries applies to the people's court for withdrawing
the disposition， the ruling of cancellation made by the people's court shall be
of equal effect to all of the joint beneficiaries.
第五章 信托的变更与终止Chapter 5 Chang and Termination of Trust
Article 50 The trustor or the heritor thereof may rescind the trust if the
trustor is the only beneficiary. If there are otherwise provisions in the trust
documents， those provisions shall be followed.
Article 51 Under one of the following circumstances， the trustor may change the
beneficiary or dispose of the beneficial rights of the trust of the beneficiary
after the trust is established：
1） The beneficiary seriously infringes upon the rights of the trustor；
2） The beneficiary seriously infringes upon the rights of any of the other joint
3） With the approval of the beneficiary； and
4） Other circumstances prescribed in the trust documents.
The trustor may rescind the trust under one of the circumstances listed in items
1， 3， and 4 of the above clause.
Article 52 The trust shall not terminate because the trustor or the trustee
dies， loses civil capacity， disbands according to law， or is canceled or
declared bankrupt according to law， neither shall the trust terminate because
the trustee resigns， unless there are otherwise provisions in this Law or the
Article 53 The trust shall terminate under any of the following circumstances：
1） Any of the causes for termination as prescribed in the trust documents
2） The existence and continuance of the trust go against the purposes of the
3） The purposes of the trust have already been realized or cannot be realized at
4） The parties of the trust agree so after negotiation；
5） The trust is withdrawn； or
6） The trust is rescinded.
Article 54 The trust property shall belong to the person prescribed in the trust
documents when the trust terminates； if there are no relevant provisions in the
trust documents， the attribution of the trust property shall be determined in
the following order：
Article 55 After the attribution of the trust property is determined according
to the preceding article， the trust is deemed as existing and continuing during
the process when the trust property is transferred to the person who has the
right to own the property， and the person is deemed as the beneficiary.
Article 56 If the people's court enforces the original trust property according
to the provisions of Article 17 of this Law after the trust terminates， the
person who has the right to own the trust property is the person against whom
the order is to be executed.
Article 57 After the trust terminates， the trustee may， when exercising the
rights to get remuneration and get compensation from the trust property
according to the provisions of this law， retain the trust property or make
claims to the person who has the right to own the trust property.
Article 58 The trustee shall make a liquidation report on the handling of the
trust affairs if the trust terminates.
If the beneficiary or the person who has the right to own the trust property has
no objection to the liquidation report， the liabilities of the trustee of the
matters listed in the liquidation report shall be relieved， unless the trustee
第六章 公益信托Chapter 6 Public Trust
Article 59 The provisions of this chapter apply to public trusts. If there are
no relevant provisions in this chapter， the provisions of this Law and other
relevant laws shall apply.
Article 60 A trust established for any of the following purposes of public
interests is a public trust：
1） Helping poor people；
2） Helping disaster victims；
3） Assisting the disabled；
4） Developing education， technology， culture， art and physical education
5） Developing medical and sanitation undertakings；
6） Developing environment protection undertakings and maintaining the
7） Developing other public undertakings of the society.
Article 61 The state encourages the development of public trusts.
Article 62 The establishment of a public trust and the appointment of trustees
shall be subject to the approval of the regulatory agency of relevant public
undertakings （hereinafter referred to as regulatory agency of public
undertakings for short）。
One must not conduct activities in the name of public trust without the approval
of the regulatory agency of public undertakings.
The regulatory agency of public undertakings shall give support to the
activities of public trust.
Article 63 The trust property of public trust and its proceeds must not be used
for non-public purposes.
Article 64 There shall be trust supervisors for public trusts.
The trust supervisor shall be prescribed in the trust documents. If there are no
relevant provisions in the trust documents， the regulatory agency of public
undertakings shall appoint the trust supervisor.
Article 65 The trust supervisor has the right to institute an action or carry
out other legal acts in his own name in order to protect the interests of the
Article 66 The trustee of a public trust must not resign without the approval of
the regulatory agency of public undertakings.
Article 67 The regulatory agency shall inspect how the trustee handles the
public trust affairs and the status of the property.
The trustee shall make at least one report on the handling of public trust
affairs and the status of the property each year， and submit to the regulatory
agency of public undertakings for approval after being recognized by the trust
supervisor， and the trustee shall make public announcement of the report.
Article 68 The regulatory agency of public undertakings shall change the trustee
if the trustee of public trust violates the trust obligations or doesn't have
the capacity to perform his duties.
Article 69 After a public trust is established， the regulatory agency of public
undertakings may change relevant clauses of the trust documents on the basis of
purposes of the trust if any of the circumstances that can't be anticipated when
the trust is established happens.
Article 70 If the public trust terminates， the trustee shall report the causes
of termination and the date of termination to the regulatory agency of public
undertakings within 15 days since the causes of termination happen.
Article 71 If the public trust terminates， the liquidation report on the
handling of trust affairs made by the trustee shall be reported to the
regulatory agency of public undertakings for ratification after the trust
supervisor recognizes， and the trustee shall make public announcement.
Article 72 If there is not a person who has the right to own the trust property
or it is the unspecified public that have the right to own the trust property
when the public trust terminates， the trustee shall utilize the trust property
for the former purposes of public interests or similar purposes， or transfer the
trust property to the public organization that has similar purposes or other
public trusts with the approval of the regulatory agency of public undertakings.
Article 73 The trustor， the trustee or the beneficiary has the right to raise an
action at the people's court if the regulatory agency violates the provisions of
第七章 附则Chapter 7 Supplementary Provisions
Article 74 This Law shall enter into force since October 1， 2001.