Chinese Trust Law: registration as the concept-substitution and a workout solution for investors (beneficiaries)

Abstract

This article argues against the quest for a concept in civil law trust. Instead, the argument for the registration of trust contract can achieve the exclusion of third parties or personal creditors of the trustee to satisfy their debts through trust properties. This is referred to as a concept-substitution rather than just a concept. The ownership concept for a dual patrimony concept aims to ensure that beneficiary could assert a claim over the trust property. The trust registration triggers the same function to exclude third parties by granting beneficiaries the right to claim (clawback) those trust properties held by bankruptcy administrator.