The Supreme People s Court was to issue "a number of provisions on trying disputes of trust management contract" in November 2003,after several rounds of drafting,there is no results even today,hence,there is almost no law to regulate the trust management contract,decisions on the same or similar cases that different courts make are different,and even far.

The Proposal on Completing the System of Asset Management of Bank;

In the asset management contract,which is common in the financial market,the managers always set a floor return clause for the clients in order to attract money.

According to “whether the assets are transferred” and “the name of investor used in business”, the trust financing can be divided into two kinds: fiducial trust financing and consigning trust financing.

Analysis of trust financing by SZSE-listed companies reveals rampant problems including insufficient disclosure, inappropriate monitor of trust financing, lack of applicable bylaws and credit risks of the entrusted.

After a dozen of years development, the variety and number of investment in Chinese security market has been substantially increased, with the emergence of new operating areas, one of which is trust financing.