Bank of China Shanghai Private Bank Domestic Family Trust Program Introduction

(1) Domestic family trust: refers to a civil trust arrangement in which the client (i.e. the trustee) establishes a trust for his/her legally owned property in accordance with the "Trust Law of the People's Republic of China" and carries out the property segregation, management and disposal for the purpose of maintenance, support, non-inheritance and other legal purposes through a trust company (i.e. the trustee of the trust) in accordance with the wishes of the client. It is a civil trust arrangement for the segregation, management and disposition of property for the purpose of support, alimony, non-inheritance succession and other legitimate purposes through a trust company (i.e. trustee of the trust) in accordance with the wishes of the client. The core legal relationship exists between the trust company as trustee and the client as principal.

(ii) The parties to a domestic family trust include the principal, trustee and beneficiaries. The private banking client is the principal, and the trust company is the trustee, responsible for the management of the use and disposal of trust assets; the beneficiaries are designated by the principal, and those who are entitled to the trust beneficiary rights in the trust are generally mainly natural persons (e.g., parents, children, relatives, or other designated persons), or legal persons and other legally-established organizations (e.g., beneficiaries under the public welfare trusts). The settlor may appoint a monitor (also known as a protector, optional, not required), who is responsible for supervising the trust company's fulfillment of relevant duties in accordance with the trust contract.

(3) Domestic family trusts are different from investment trusts with financial management nature for the purpose of obtaining investment income, mainly based on the independence of trust property and risk isolation effect conferred by the trust law, the establishment of trusts for customers to isolate the property set up, and then the fiduciary assets for investment management, and to provide trust beneficiary rights distribution of the transactional work.

(d) The trust structure and transactional management of the family trust is designed and managed by the cooperating trust company.

(v) The investment service portion of the financial asset management of the family trust business shall be performed by the cooperative trust company as the trust asset manager. The private banking authorities of each branch may negotiate with the cooperative trust company to adopt the form of dual financial advisors, agreeing on the order of financial assets corresponding to the financial advisory services provided by both parties in the trust business or allocating different proportions to each party to make investment allocation recommendations. The private banking department of each branch acts as the financial advisor and provides investment allocation recommendations only within the scope of the products approved by the Bank.

(F) Trading vehicle for the trust asset management portion of the family trust business: the single trust plan of the family trust business is the main trading vehicle.

(7) Transaction vehicle for the cash proceeds and principal distribution portion of the family trust business: in the case of natural persons as beneficiaries, the private banking authorities of each branch will use the bank accounts opened in our bank under the names of the designated beneficiaries of the family trust business as the main transaction vehicle.

The above is for your reference, please refer to the actual business regulations.

If you have any questions, please feel free to contact Bank of China online customer service.

You are cordially invited to download and use the Bank of China Mobile Banking APP or BOC Cross-border GO APP to handle related business.