Private trusts in China and some lessons from Australia

Abstract

Due to the increasing requirements of wealth management and diversification, it has become necessary to develop private trusts in China. Private trusts are well developed in Australia, especially the private business trust, which plays a significant role in stimulating economic development in Australia. This article considers what might be learned from the Australian example. It considers that some of the obstacles to private trusts development in China could be the lack of tax incentives, the incomplete registration system for private trusts, and unascertainable trust legislation. The article posits that China could absorb useful ideas with regard to developing private trusts in the future. It concludes by making some proposals for Chinese private trusts development.