China Banking Regulatory Commission: It is clear that a trust company can establish an audit committee composed of directors to exercise the functions of the supervisory board, and may no longer establish a supervisory board.

Officials from relevant departments of the China Banking and Insurance Regulatory Commission answered questions from reporters on the "Decision on Amending Some Rules." The "Decision" amends the provisions on the establishment of a board of supervisors in the "Regulations on the Administration of Trust Companies" and the "Interim Measures for the Administration of Equity of Trust Companies," explicitly stating that the audit committee composed of directors may exercise the functions of the board of supervisors, and the board of supervisors may no longer be required. These amendments are in line with the Company Law, allowing institutions to choose whether to continue to maintain a board of supervisors or have the audit committee perform the functions of the board of supervisors, which is conducive to optimizing corporate governance structure and enhancing the efficiency of internal supervision.