1. Independence of trust property.

The trust property of a trust-type private equity fund is the funds formed by investors subscribing to the collective fund trust plan.

Trust property is property that only obeys and serves the purpose of the trust and has an independent status from each trust party.

After the investor subscribes to the trust plan, the trust property no longer belongs to the investor's own property and is different from other properties for which the investor has not established a trust. Although the trust property can be managed or used by the trust company, it is also independent of the trust company.

All property is the inherent property of the trust company.

The trust property is not affected by the deterioration of the trust company's financial situation or even bankruptcy. Unless otherwise provided by law, the trust property cannot be enforced.

Current laws stipulate that after the trust plan is established, the trust company shall deposit the trust property into a special account for trust property, and the commercial bank selected by the trust company shall act as the custodian and implement a custody system.

The independence of trust property is the most distinctive legal design of trust property.

2. Trust-type private equity funds have low operating costs.

From the perspective of operating costs, unlike corporate and limited partnership private equity funds, trust private equity funds do not need to register a special company or limited partnership. They only need to reach an agreement between the parties, thus greatly reducing costs.

actual operating costs.

3. Continuous improvement of relevant laws and regulations.

Now our country has promulgated "one law and two regulations", namely the "Trust Law", "Trust Company Management Measures" and "Trust Company Collective Fund Trust Plan Management Measures", plus the "Trust Company Private Equity" issued in June 2008. "Investment Trust Business Operation Guidelines", the promulgation of these laws and regulations provides a good legal platform for the development of trust-type private equity funds in my country.

4. The supervision of business operations is becoming increasingly standardized.

Laws and regulations clarify the regulatory agencies and supervisory measures for trust property in the operation of trust-type private equity funds, and stipulate that banks are responsible for the custody of trust property. The trust management activities of trust companies must strictly comply with the provisions of laws, regulations and trust contracts, and must be in

conducted under the supervision and management of the China Banking Regulatory Commission.