Article on Trust Law in China

Kai Lyu (The Chinese University of Hong Kong (CUHK) – Faculty of Law) recently published an article entitled, Clarifying the Trust Law in China: Characteristics and Conceptual Basis, Wills, Trusts, & Estates Law eJournal, Vol. 9, No. 33: Nov. 20, 2013.  Provided below is the abstract from SSRN:

As a civil law jurisdiction, China’s Trust Law was designed with three characteristics in the process of transplantation and localization of the common law trust. However, these characteristics give rise to theoretical confusions and practical obstacles. This unintended result is not caused by insufficient rules in the Trust Law but by a deficient conceptual basis which is needed to underpin the trust institution. This paper addresses this problem by testing the contract theory and the special patrimony theory and, after systemic analyses, concludes that the latter conceptualizes China’s Trust Law well.