Administrative Measures On Domestic Securities Investment By Qualified Foreign Institutional Investors

Original Language Title: 合格境外机构投资者境内证券投资管理办法

Read the untranslated law here: https://www.global-regulation.com/law/china/160496/.html

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Get a Day Pass for only USD$19.99.
(August 24, 2006, the China Securities Regulatory Commission, the people's Bank of China, State administration of foreign exchange, 36th published as of September 1, 2006) Chapter I General provisions article in order to regulate the qualified foreign institutional investors to invest in China's domestic securities market, promote the development of China's securities market, according to relevant laws, administrative regulations, and these measures are formulated.
    Article referred to in this way by qualified foreign institutional investors (hereinafter referred to as qualified investors), refers to compliance with these regulations, by the China Securities Regulatory Commission (hereinafter referred to as the China Securities Regulatory Commission) approval to invest in China's securities market, and the State administration of foreign exchange (hereinafter referred to as foreign exchange) lines approved by the China offshore fund management institutions, insurance companies, securities companies and other asset managers.
    Third qualified investors should entrust domestic banks as Trustees managed assets, delegate domestic securities companies in the securities trading activity.
    Fourth qualifying investors must abide by Chinese laws and regulations and other related regulations.
    Fifth China Securities Regulatory Commission on domestic securities investment by qualified investors according to law exercise supervision, State administration of foreign exchange on domestic securities investment by qualified investors to invest, and inward remittance of capital implementation of foreign exchange control.
    Second chapter qualification conditions and approval program sixth article application qualified investors qualification, should has following conditions: (a) applicants of financial sound, funding letter good, reached China SFC provides of assets scale, conditions; (ii) applicants of practitioners meet where national or area of about practitioners qualification of requirements; (three) applicants has sound of governance structure and perfect of internal control system, business behavior specification, near 3 years not by regulatory institutions of major punishment;
    (D) the applicant's country or region has a sound legal and regulatory systems, securities regulators have signed a memorandum of regulatory cooperation with the China Securities Regulatory Commission, effective regulatory cooperation relations and (v) other conditions stipulated by the CSRC based on prudent regulatory principles.
    Seventh eligibility criteria for qualified investors and the investment quota, applicants can be managed separately to the CSRC and safe submitting the file. Eighth section of China Securities Regulatory Commission from the date of receiving the complete application documents within 20 working days, to review the application materials and seek foreign exchange advice, the decision to approve or disapprove.
    Approved by decision, issuing licenses for securities investment business; decided not to ratify, and notify the applicant in writing.
    Article the applicant shall obtain a license for securities investment business within 1 year of the date, through the trustee to apply to the State Bureau of foreign exchange investment quota. Foreign Exchange from the date of receiving the complete application documents within 20 working days, to review the application materials and to seek the views of China Securities Regulatory Commission, the decision to approve or disapprove.
    Approved by decision, a written approval and issuance of registration certificate; decided not to ratify, and notify the applicant in writing.
    Tenth in order to encourage long-term investment, in line with the regulation of pension funds, insurance funds, mutual funds, charitable fund long-term capital management, be given priority.
    Third chapter managed, and registration and settlement 11th article managed people should has following conditions: (a) has specifically of assets managed Department; (ii) real received capital many Yu 8 billion Yuan Yuan; (three) has enough of familiar managed business of full-time personnel; (four) has security custody qualified investors assets of conditions; (five) has security, and efficient of liquidation, and delivery capacity; (six) has Exchange specified bank qualification and business Yuan business qualification; (seven) recently 3 years no major violation Exchange Management provides of records.
    Foreign commercial bank branch in the continuing operation in more than 3 years in the territory, can apply to become a trustee, in fact, conditions of capital amounts calculated by their overseas headquarters. The 12th article qualified as a trustee must be approved by China Securities Regulatory Commission and the State Bureau of foreign exchange.
    The China Securities Regulatory Commission after receipt of the complete application file, within the 30 working days to sign the safe Council managed licensing. 13th article managed people should perform following duties: (a) custody qualified investors managed of all assets; (ii) handle qualified investors of about settlement, and sale meeting, and collection, and pay meeting and Yuan funds settlement business; (three) supervision qualified investors of investment operation, found its investment instruction illegal, and violations of, timely to China SFC and national Exchange Council report; (four) in qualified investors meeting into principal, and meeting out principal or returns 2 a days within, to national Exchange Council report qualified investors of funds meeting into, and Meeting out and the knot sale meeting situation; (five) monthly end Hou 8 a days within, to national Exchange Council report qualified investors of Exchange account and Yuan special account of payments and assets configuration situation, to China SFC report securities account of investment and trading situation; (six) each fiscal year end Hou 3 months within, prepared on qualified investors Shang a annual territory securities investment situation of annual financial report, and submitted China SFC and national Exchange Council; (seven) save qualified investors of funds meeting into, and meeting out, and Exchange, and
    Receipt, payment and financial records and other related information, save time should be not less than 20 years; (VIII) carried out according to the State administration of foreign exchange balance of payment statistics reporting; (IX), the China Securities Regulatory Commission, the State Foreign Exchange administration according to the principle of prudent supervision of other responsibilities.
    14th the trustees must be its own assets and entrusted with the strict separation of assets managed, entrusted with the management of the split of assets managed.
    15th each eligible investors have entrusted 1 trustee, custodian and replaced. 16th the QFII securities registration and clearing institutions can apply for opening a securities account.
    The security account can be a real name account, or a nominal holder accounts.
    Holder should be acting in the name of the actual investor or fund name, place of registration, asset allocation, portfolio investment within 8 working days of the end of each quarter, reported the China Securities Regulatory Commission and the stock exchange. 17th qualified investor shall entrust a securities registration and clearing institutions clearing participants eligible for financial settlement.
    The Agency should open RMB settlement account opening within 5 working days of foreign exchange to the State Council for the record.
    18th Chapter fourth investment operation of qualified investors within the approved investment amount, you can invest in currency financial instruments approved by the China Securities Regulatory Commission.
    19th qualified investors can delegate investment management institutions, securities companies established in the territory of, the domestic securities investment management.
    Stock investments in the territory of the 20th qualifying investors, shall comply with the provisions of the China Securities Regulatory Commission ownership restrictions and other relevant regulations of the State.
    21st when foreign investors comply with disclosure obligations, should consolidate their holdings within the same company listed shares and overseas listed stocks, and to comply with laws and regulations related to the disclosure of information.
    22nd save the institutions such as securities companies qualified investors entrusted record time, transactions and other information should be not less than 20 years.
    23rd QFII securities investment activities in the territory, shall comply with the relevant regulations of the stock exchanges, securities registration and clearing institution.
    Fifth chapter funds management article 24th qfiis approved by the State Bureau of foreign exchange shall be the custodian Department open a foreign exchange account and special RMB account.
    25th qualified investors Foreign Exchange account and special RMB account balance range shall conform to the relevant provisions of the foreign exchange.
    26th qualifying within the time specified by the investors should import capital, into the country should be the principal foreign exchange Bureau in a convertible currency, amounts are limited to approved limits.
    Eligible investors within the time specified by the in the meeting with the principal shall be submitted to the China Securities Regulatory Commission and the State Foreign Exchange Administration to provide a written explanation, and the remitted amount for approved limits for approved limits and has actually been remitted the amount of the difference, without the approval of the State Foreign Exchange Administration prior to import.
    Qualified 27th article expiration of the period specified by the investor can apply to the foreign exchange remitted from the date funds, except for the provisions of foreign exchange.
    28th national foreign exchange Bureau under China's economic and financial situation and the balance of payments, foreign exchange supply and demand, in accordance with the rules of the arrangement for qualified investors into the remit of the principal term, amount and remit funds be adjusted.
    Supervision and administration of the sixth chapter the 29th China Securities Regulatory Commission, State administration of foreign exchange may request qualified investors, custodian, securities companies and other institutions to provide qualified investors with relevant information, and make the necessary inquiries and inspection.
    30th article qualified investors has following case one of of, should in its occurred Hou 5 a days within reported China SFC, and national Exchange Council record: (a) change managed people; (ii) change statutory representative people; (three) its holding shareholders change; (four) adjustment registered capital; (five) involved major litigation and the other major event; (six) in outside by major punishment; (seven) China SFC and national Exchange Council provides of other case.
    31st qualified investors with one of the following, it should be re-apply for a license for securities investment business: (a) change of name, (ii) merger by other bodies; (c) specified by the CSRC and other circumstances. During the re-apply for a license for securities investment business, qualified investors can continue to conduct securities transactions.
    But the CSRC based on prudent regulatory principles except deems it necessary to suspend.
    32nd article qualified investors has following case one of of, should will securities investment business license and Exchange registration card respectively returned China SFC and national Exchange Council: (a) applicants made securities investment business license Hou 1 years within not to national Exchange Council proposed investment lines application of; (ii) institutions dissolved, and into bankruptcy program or by took over people took over of; (three) qualified investors again apply for license of; (four) qualified investors has major violations and the China SFC and national Exchange Council finds of other case.
    33rd qualifying securities account managed by the investors of a major illegal or irregular behaviour, the CSRC may take such measures as limiting trading of the relevant securities accounts, foreign exchange law take measures such as limiting its access to funds.
    Article 34th Trustees law, violations are serious, the China Securities Regulatory Commission, the National Foreign Exchange Administration will be United to cancel its decision of trustee qualification according to law.
    35th qualified investors, custodian, securities companies in violation of these regulations, by the China Securities Regulatory Commission, the State administration of foreign exchange of the corresponding administrative punishments.
    The seventh chapter supplementary articles article 36th Hong Kong S.A.R., and Macau S.A.R., and Taiwan areas of mainland institutional investors to invest in securities, and apply the provisions of these measures.
                                                    37th article of the rules take effect on September 1, 2006, and on November 5, 2002, the China Securities Regulatory Commission, the people's Bank of China the joint publication of the interim measures for the management of domestic securities investment by qualified foreign institutional investors also abolished.

Related Laws