The Ministry of Finance announced on 1 August a set of draft rules governing the management of mutual trust funds, paving the way for local investment and trust companies to organize mutual trust funds for equity investments. Under the proposed rules, investment and trust firms will be allowed to form mutual trust funds for making investments in stocks, government bonds, bank debentures, corporate bonds, convertible bonds, commercial papers, gold, foreign exchange, futures and other derivative products. The mutual trust funds could also engage in the guarantee business, financial factoring, the buying of beneficiaries issued by other financial institutions and property investment, MOF officials said. A provision in the rulings, however, stipulates that the aggregate amount of cash held and deposits kept within the banking system by a trust fund manager can not exceed 20% of its total capital.