CBIRC launches new regime for investments in PRC trust companies

On 6 February 2020, China Banking and Insurance Regulatory Commission (“CBIRC”) published new rules on equity holdings in trust companies (“Rules”). The Rules will come into effect on 1 March 2020 and will apply to all trust companies in the People’s Republic of China (“PRC”). The Rules, which are similarly structured to the 2018 rules on equity holdings in commercial banks, apply the “look-through” principle to related party transactions and strengthen supervision over “substantial shareholders”, one who holds a stake of 5% or more or otherwise has significant influence over the operation of the trust company.

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