¡°China¡¯s Trust Sector: The Next Chapter¡± by KPMG and Reuters

¡°China¡¯s Trust Sector: The Next Chapter¡± by KPMG and Reuters

KPMG China and Reuters recently released a joint report on the evolution of the trust sector in China. KPMG is a leader in tax, accounting, and advisory services, while Reuters is a prominent news service provider. The report includes the following:

A description of the trust fund sector in China, detailing how Chinese trusts are different than American trusts, and incorporate characteristics of private equity, asset management and banking sectors.

Information on the range of products offered by trusts, including single unit trusts, combined trusts, and property management trusts.

Background information on the emerging area of Real Estate Investment Trusts (REITs), which allow investors to purchase the stream of beneficial rights to a property without owning any of the underlying real estate itself.

Opportunities for trust companies to expand their offerings in the future, including IPOs and SME finance options.

Case studies of several trusts that are expanding their operations in China: Morgan Stanley, CITIC, China Credit Trust, Macquarie, and RBS.

Edward E. Lehman, Managing Director of Lehman, Lee & Xu, commented that, ¡°though the trust sector suffered during the economic downturn, it is poised for a strong rebound.¡± Mr. Lehman has been working in China for over twenty years and has provided numerous foreign banks and companies with investment advice in their operations in China. ¡°As the economy strengthens, it will increase the demand for banking and related services, including new varieties of trust products,¡± he added.

Lehman, Lee & Xu is one of the biggest Chinese law firms, with a dedicated team in the banking and financial practice areas. For more information about Lehman, Lee & Xu, please visit the firm's website at www.lehmanlaw.com or feel free to e-mail the Beijing office at mail@lehmanlaw.com.

The KPMG/Reuters report in its entirety is available online at: http://www.kpmg.com/CN/en/IssuesAndInsights/ArticlesPublications/Pages/China-trust-sector-next-chapter-201002.aspx.

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