The rapid expansion of the Chinese economy has made China aware if the importance of the rule by law. Perfecting its legal system and expanding its economy are the two goals of modern China. Many laws and regulations have been enacted since the economic reform was launched at the end of 1970s. The enactment of the Chinese Law of Trusts is an important step in the refinement of the Chinese legal system.This thesis aims to identify the deficiencies in the Chinese Law of Trusts by giving a critical and comparative study of the Australian and the Chinese trusts law, so as to propose amendments to the Chinese Law of Trusts. This thesis is divided into two Parts, and seven Chapters. Part One, which comprises five chapters, is a comparative study of the Australian and the Chinese trusts law. It also discusses the laws of trusts in other important Common Law and Civil Law jurisdictions. Chapter 1 of this Part deals with the basic concept of the trust. It introduces and discusses the definition, and the characteristics of the trust, the comparison between the trust and other similar concepts, and the classification of trusts. Chapter 2 deals with the creation of express trusts. With respect to the rights and duties of the trust parties, Chapter 3 gives a detailed discussion. Chapter 4 examines the variation and termination of trusts. The last chapter of Part One, Chapter 5, specifically analyses the charitable trusts.Part Two comprises two chapters: Chapter 6 and Chapter 7. Chapter 6 discusses the practical impact of the Chinese Law of Trusts on the Chinese State-owned enterprise reform, which has been progressing for more than two decades in China. Chapter 7 is a general concluding chapter. It pinpoints the deficiencies in the Chinese Law of Trusts, analyses the reasons for the deficiencies, and suggests two solutions to improve the Law: namely, to improve the existing provisions of the Law and to adopt eclectically the elaborate concepts of the Australian law of trusts.

University of Macau / Faculty of Law

University of Macau / Faculty of Law