China Banking and Insurance Regulatory Commission revises trust company management rules, raising minimum registered capital and tightening governance

The China Banking and Insurance Regulatory Commission revised and reissued the Measures for the Administration of Trust Companies, refocusing trust companies on core trust functions while strengthening governance, risk management and supervisory requirements, including a higher minimum registered capital and clearer risk disposal arrangements. The revised framework adjusts the business scope around the trustee role and standardises the conduct of asset service trusts, asset management trusts, and public welfare and charitable trusts. It reiterates the principle that sellers must fulfil their duties and buyers bear risk, with compensation required where sellers are at fault, and seeks to break implicit guarantees. Governance provisions require deeper integration of Party building with corporate governance, tighter controls on shareholder conduct and related-party transactions, and more scientific internal assessment and incentive-constraint mechanisms, alongside an emphasis on maximising beneficiaries’ legitimate interests. On risk controls, trust companies are expected to strengthen enterprise-wide risk management with a focus on compliant performance of trustee duties and operational risk, supported by whole-process management of trust business. Implementation will be supported through enhanced supervisory guidance and follow-up by the regulator.