Translator：Wang Qiyu

Recently, Hangzhou Industrial and Commercial Trust Co., Ltd. successfully established the first innovative AB share Targeted Oriented Fund (TOF) securities product, named "Hang Gong Xin · Guang Yuan 1st Collective Fund Trust Plan." The product's trust units are categorized as A-class and B-class, with a certain allocation invested in two types of private funds: the CSI 500 Index Enhanced Strategy and Absolute Return Strategy. A-class trust units are linked to the performance of the CSI 500 Index and provide fixed enhanced returns, while the design of B-class trust units aims to achieve superior returns compared to ordinary quantitative hedge products, without being affected by hedge-end basis fluctuations.

Hangzhou Industrial and Commercial Trust is the first shareholding financial institution in Hangzhou, established in 1986, with Hangzhou Financial Investment Group Co., Ltd. as its controlling shareholder. Approved by regulatory authorities, the company has obtained various qualifications for innovative businesses, including the establishment of a wholly-owned subsidiary for private equity (PE) investment with inherent assets in 2010, a joint venture with Morgan Stanley in 2011 to establish a RMB-denominated private equity fund management company – Morgan Stanley (China) Equity Investment Management Co., Ltd., and qualification to engage in equity investment business with inherent assets in 2016.

As the legal counsel for this project, Landing provided comprehensive legal services. The project team included lawyers Zhang Min, Sun Xian, Chen Zhijian, and Wang Xiaoyue. With the China Banking and Insurance Regulatory Commission's release of the "Interim Measures for the Management of Trust Company Fund Trust (Draft for Solicitation of Comments)" and its public solicitation of opinions, various trust companies have intensified their efforts to launch standardized products and have innovatively designed multidimensional products to meet market demands. Leveraging their extensive experience in financial law, the Landing legal team consistently delivers comprehensive and high-quality legal services to clients.