By Xia Bin　

Date: 2004/11/03

Abstract:    

The same trust business entrusted by clients to respective trust companies and stock companies are under different policy regulations. The divergence in the regulation and management of trusted financing market has induced unnecessary risks. At present, the practice of monitoring through banks on the trusted companies should be changed; the main focus is to supervise the trust activities matching trust structural factors and to ensure that the trustees honestly carry out the trust contract. It is not necessary to use the rate of capital abundance as the checking indicator on the trust companies. Except the stock investment foundations, the entrusted fund should mainly rely on private placement, the 200 contract limit can be lifted, the third-party trust system should be strengthened and the branches of the trust companies should be allowed to make business in locations other than their registered places. The trust business should not be charged monitoring fees with bank methods.