Pilot RMB domestic securities investment by qualified foreign institutional investors ways

    (March 1, 2013, China Securities Regulatory Commission, the people's Bank of China and the State administration of foreign exchange announced come into force on the date of promulgation, 90th), first to standardize the renminbi in domestic securities investment by qualified foreign institutional investors to promote securities market development, protecting the legitimate rights and interests of investors, according to relevant laws and administrative regulations, these measures are formulated.

    Second Yuan in these measures by qualified foreign institutional investors (hereinafter referred to as the RMB QFII), is signed by the China Securities Regulatory Commission (hereinafter referred to as the China Securities Regulatory Commission) approval, and the State administration of foreign exchange (hereinafter referred to as foreign exchange) approved by quota, the use of renminbi funds from outside the domestic securities investment by a foreign legal person.

    Article III of the CSRC on the RMB QFII supervise domestic securities investment, people's Bank of China (hereinafter referred to as the people's Bank) in accordance with the RMB QFII in managed to open a Renminbi bank account, State administration of foreign exchange on RMB QFII investment quota management, the people's Bank in conjunction with the State administration of foreign exchange on RMB QFII funds access to monitor and manage.

    Article fourth QFII securities investment business in RMB, should entrust a qualified foreign institutional investor qualification of trustee is responsible for the asset management business of commercial banks in the territory, delegate domestic securities company to purchase or sell securities.

    RMB QFII may delegate asset management institutions in domestic securities and investment management.

    Article fifth RMB QFII qualification, subject to the following conditions:

    (A) the financial soundness, good credit, registration, business qualifications meet the requirements of China Securities Regulatory Commission;

    (B) effective internal controls and corporate governance, employees comply with the country or region in which the relevant qualification requirements;

    (C) the operating code of conduct, the last 3 years or since its creation, not regulators, where significant punishment;

    (D) other conditions stipulated by the CSRC based on prudent regulatory principles. Sixth article of the China Securities Regulatory Commission on the RMB QFII securities investment business in audit qualifications, from the date of receiving the complete application documents within 60 days to approve or not to approve the decision.

    Approved by decision will give written approval and issuance of license for securities investment business; decided not to ratify, and notify the applicant in writing.

    Article seventh RMB QFII securities investment business in qualification shall take the following documents apply to the foreign exchange investment quota:

    (A) applications, including General information, source notes, domestic securities investment program;

    (B) the securities investment business issued by CSRC license copy;

    (C) a notarized power of Attorney of the domestic custodian;

    (D) other material foreign exchange requirements. Foreign Exchange receipt of the RMB QFII complete application files within 60 days from the date of approval or disapproval decision.

    Approved by decision will give written approval and issuance of registration certificate; decided not to ratify, and notify the applicant in writing.

    Territory of the eighth of the RMB QFII custodian shall perform the following duties:

    (A) keep the RMB QFII's entire portfolio;

    (B) supervise the domestic securities investment of RMB QFII operation;

    (C) handling RMB QFII funds access and other related business;

    (D) in accordance with the provisions of the balance of payments statistics;

    (E) to the CSRC and the people's Bank and foreign exchange related reports and statements submitted;

    (Vi) the China Securities Regulatory Commission, the people's Bank and the national foreign exchange administration according to the principle of prudent supervision of other responsibilities. Nineth RMB QFII, the approved investment amount invested in financial instruments, shall comply with the relevant regulatory requirements.

    The China Securities Regulatory Commission and the people's bank based on macro-management requirements and pilot development, and adjustments made to the overall proportion and variety.

    QFII investment of RMB bond market, according to people's Bank regulations.

    Article tenth pilot RMB QFII securities investment business in the territory, should comply with China on shareholding, information disclosure and other legal regulations and other requirements of the relevant regulation.

    RMB QFII shall, in accordance with the provisions of the people's Bank, to people through the domestic Custodian Bank submitted information management system for cross-border RMB cash remittance of RMB funds and other information.

    11th Yuan qualified investors should be in accordance with the relevant requirements of line management of investment funds.

    Remittance of RMB QFII RMB or buy out principal and return on investment.

    12th the CSRC and the people's Bank and the State administration of foreign exchange currency qualified investors and the domestic custodian of RMB qualified investors, securities companies and other institutions to provide relevant information, and make the necessary inquiries and inspection.

    13th RMB QFII has any of the following circumstances, should report within 5 business days of the China Securities Regulatory Commission, people's Bank and the national foreign exchange office:

    (A) change the domestic custodian;

    (B) change the heads;

    (C) change of equity structure;

    (D) adjusting registered capital;

    (E) the merger of other institutions;

    (Vi) is involved in material lawsuits and other major events;

    (VII) severely punished outside;

    (VIII) specified by the CSRC and the people's Bank of China and other circumstances.

    14th RMB QFII has any of the following circumstances shall re-apply for a license for securities investment business:

    (A) change of name;

    (Ii) merger by other agencies;

    (C) other circumstances as the China Securities Regulatory Commission and the State Bureau of foreign exchange.

    During the re-apply for a license for securities investment business, Yuan qualified investors can continue to make portfolio investments, but the CSRC based on prudent regulatory principles except deems it necessary to suspend.

    15th RMB QFII has one of the following situations, securities investment business should be licensing and foreign exchange registration certificates returned to the issuing authority, respectively:

    (A) the securities investment business within 1 year after the license does not apply to the State Bureau of foreign exchange investment quota;

    (B) Organization disbandment, bankruptcy proceedings or by the receiver;

    (C) the CSRC and the people's Bank of China and the State Bureau of foreign exchange in other circumstances.

    16th RMB QFII and the domestic custodian securities investment business in the territory of violations occurred during the pilot, the China Securities Regulatory Commission, the people's Bank and foreign exchange can take appropriate supervisory measures and administrative sanctions according to law. 17th these measures come into force on the date of promulgation, released on December 16, 2011 the Fund management company, securities company RMB pilot measures on domestic securities investment by qualified foreign institutional investors (SFC, 76th) repealed simultaneously.