Recently, Beijing King&Capital Law Firm assisted COFCO Trust to complete the landing work of listed company's employee equity incentive trust. This Employee Equity Incentive Trust is set up by a mainland company listed on the Hong Kong Stock Exchange as a trustee to reward employees for their contributions to the enterprise, giving full play to the independence of the trust property and the flexibility of the trust management, attracting talents for the development of the enterprise while rewarding outstanding employees, linking the interests of the employees with the value of the enterprise, and prompting the employees to reach the goal of long-term common development with the enterprise. .

As early as March 20, 2023, in order to promote the return of trust business to its origin and standardized development, the former China Banking and Insurance Regulatory Commission issued the Circular on Regulating the Classification of Trust Businesses of Trust Companies (Banking and Insurance Supervision Regulation [2023] No. 1), which classified the trust business into three major categories of asset service trusts, asset management trusts, and public welfare and charitable trusts with a total of 25 business varieties. Employee equity incentive trust belongs to wealth management service trust under asset service trust.

King&Capital Law Firm's Finance and Wealth Management Practice Team acted as the legal advisor for the whole project, and assisted in the successful completion of the project from the perspectives of trust program production, trust text design, breakthroughs in legal difficulties, and issuance of legal opinions. In the future, the team will devote itself to the development of trust business, give full play to the team's advantages in theoretical research and innovative practice, and provide professional legal services to clients in need.