The legal nature of corporate fund refers to the operation form of legal relationship of corporate fund, that is, trust. Specifically, the legal nature of self-operated company funds is weak trust, while the legal nature of other operating company funds is strong trust. Fund managers and fund custodians shall perform their fiduciary duties in accordance with laws and fund contracts.

legal ground

Article 3 of People's Republic of China (PRC) Securities Investment Fund Law

The rights and obligations of fund managers, fund custodians and fund share holders are stipulated in the fund contract in accordance with this Law.

Fund managers and fund custodians shall perform their fiduciary duties in accordance with this Law and the provisions of fund contracts.

Fund share holders of funds established through public offering (hereinafter referred to as Public Offering of Fund) shall enjoy benefits and bear risks according to their fund shares, and the income distribution and risk bearing of funds established through non-public offering (hereinafter referred to as non-public offering funds) shall be stipulated in the fund contract.