China Banking Regulatory Commission, Measures for the Administration of Trust Companies

Promulgated: January 23 2007
Effective: March 1 2007

Main Contents: As a revision of the former Measures for the Administration of Trust and Investment Companies, these new Measures prohibit a trust company from engaging in liability business other than interbank borrowing. A trust company may not use its own property to invest in industry, unless otherwise provided by the China Banking Regulatory Commission. When engaging in business for its own account, a trust company may not provide financing or transfer property to affiliated parties, provide security for affiliated parties, or provide financing on the strength of a pledge of the company's equity held by a shareholder.