Abstract

The location of ownership of trust property has been a hotly debated issue among Chinese scholars since the Chinese Trust Law was enacted in 2001. This chapter describes various conventional interpretations of Chinese Trust Law submitted by legal scholars. Moreover, it develops a new, but more practical way, to explain why Chinese trust business has expanded in spite of the uncertainty of Chinese Trust Law regarding the location of ownership of trust property, using a social capital perspective. This chapter also further tries to predict what conditions would enable and make it desirable for China to clarify the location of the ownership of trust property.

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