(April 21, 2004, China insurance regulatory Commission order 2004 2nd release) Chapter I General provisions article in order to strengthen the supervision and administration of insurance asset management companies to guard against risk management of insurance funds, protect the legitimate rights and interests of insurance companies and insurance asset management companies, according to the People's Republic of China insurance (hereinafter referred to as the Insurance Act) and the People's Republic of China law, these provisions are formulated.
    Second, China insurance regulatory Commission (hereinafter "CIRC") according to the State Department authorization, to supervise and administer the insurance asset management companies.
    Article refers to an insurance asset management company approved by the China insurance regulatory Commission, jointly with relevant departments, legally registered financial institutions, entrusted with the management of insurance funds.
    Insurance refers to the insurance company of the insurance reserve fund of funds, capital, operating funds, provident funds and undistributed profits and other liabilities as well as assets formed by these funds.
    Fourth insurance company insurance asset management company commissioned management of insurance funds shall comply with the relevant provisions of the Insurance Act and the China insurance regulatory Commission, voluntariness, fairness and the principle of good faith, must not harm the interests of the State and social public interests.
    Article fifth insurance asset management company managing insurance funds shall comply with the relevant provisions of the Insurance Act and the China insurance regulatory Commission, performance, careful due diligence obligations of good faith.
    Chapter II establishment, change and termination article sixth set up insurance asset management companies shall be approved by the China insurance regulatory Commission, in conjunction with relevant departments.
    Article seventh insurance asset management companies shall take the following forms: (a) a limited liability company, (ii) co., Ltd. Eighth article established insurance assets management company, should at least has a home shareholders or sponsors for insurance company or insurance holding (Group) company, the insurance company or insurance holding (Group) company should has following conditions: (a) business insurance business 8 years above; (ii) recently 3 years not for violation funds using provides by administrative punishment; (three) net worth not below 1 billion Yuan Yuan; total assets not below 5 billion Yuan Yuan, Which insurance holding (Group) company and business has life insurance business of insurance company total assets not below 10 billion Yuan Yuan; (four) meet China Circ provides of paid capacity requirements; (five) has perfect of corporate governance structure and internal control system; (six) has assets liabilities match management sector and risk control sector, has complete of investment information management system; (seven) funds using sector concentrated using management of assets accounted for company total assets of proportion not below 50%,
    Engaged in life insurance business insurance companies not under 80% and (VIII) other conditions stipulated by the Circ.
    Nineth total domestic insurance companies hold stakes in the asset management company shall not be less than 75%.
    Insurance companies in the former paragraph, is approved by the China insurance regulatory Commission was established and legally registered with the legal personality of the insurance company or insurance holding (Group) company.
    Tenth insurance asset management companies the minimum registered capital of RMB 30 million or its equivalent in a freely convertible currency and its registered capital shall be paid up capital. Insurance asset management company's registered capital shall not be less than the fiduciary management of insurance funds of 1 per thousand, less than 1 per thousand, there should be a corresponding increase in capital.
    But its registered capital of 500 million Yuan, is no longer the capital increase.
    11th article established insurance assets management company, applicants should to China Circ proposed written application, and submitted following material: (a) established applications; (ii) intends set company of feasibility research report and the preparation programme; (three) shareholders of basic information, including shareholders of name or name, and statutory representative people, and organization, and registered capital, and business range, and qualification proved file and by accountants firm audit of recently 1 years balance sheet and profit and loss table;
    (D) comply with the conditions specified in article eighth shareholder documentation of last 3 years, as well as audited by the accounting firm's balance sheet and profit and loss accounts; (v) preparations for the proposed company heads the list and curricula vitae (f) Investor-funded letters of intent or share subscription agreement; (VII) other materials stipulated by the Circ. Applications for 12th on the establishment of insurance asset management companies, the China insurance regulatory Commission shall, jointly with relevant departments under the State Council for a preliminary review, from the date of receiving the complete application documents within 3 months of approval or the decision not to grant.
    Decided not to grant, and shall notify the applicant in writing and state the reasons. 13th the applicant shall receive the approval of the China insurance regulatory Commission within 6 months from the date of the letter, complete the preparation. Did not complete the preparation within the prescribed period, the applicant requested, approval of the China insurance regulatory Commission, the preparatory period can be extended for 3 months.
    Construction has yet to complete the preparation of the expiry, original letter automatically invalidated.
    Lead institutions in the start-up period shall not engage in any business activity.
    14th article preparation work completed Hou, applicants should to China Circ proposed opened application, and submitted following material: (a) opened application report; (ii) statutory inspection funding institutions issued of inspection funding proved, capital recorded voucher copies; (three) intends any senior management personnel, and main practitioners of list and resume; (four) business places of ownership or right proved file; (five) company articles and internal management system; (six) information management system, and funds using trading equipment and security prevention facilities of information;
    (VII) other materials stipulated by the Circ. 15th Circ set up insurance asset management companies shall receive the full application documents the date of incorporation in the 20th, make a decision of approval or disapproval.
    Decides to approve the issue of permit to operate insurance asset management business; the decision not to approve, and shall notify the applicant in writing and state the reasons.
    16th article insurance assets management company established branch institutions, should to China Circ proposed application, and submitted following material: (a) established applications; (ii) intends set institutions of business range; (three) intends set institutions future 3 years of business planning and market analysis; (four) intends set institutions preparation head of resume and the related proved material; (five) information management system, and funds using trading equipment and security prevention facilities of information.
    17th China insurance regulatory Commission on the establishment of insurance asset management companies applying for preliminary review of the branch, from the date of receiving the complete application documents in the 20th for approval or the decision not to grant decided not to approve, shall notify the insurance asset management companies and state the reasons.
    18th insurance asset management companies shall receive the approval of the China insurance regulatory Commission to build the branch office within 3 months from the date of completion of preparatory work; did not complete the preparation within the stipulated period, original letter automatically invalidated.
    Lead institutions in the start-up period shall not engage in any business activity.
    19th article branch institutions preparation work completed Hou, insurance assets management company should to China Circ proposed opened application, and submitted following material: (a) opened application; (ii) preparation work completed situation report; (three) business business range; (four) intends any institutions head of resume and the related proved material; (five) business places of right or ownership proved file; (six) information management system, and funds using trading equipment and security prevention facilities of information; (seven) internal institutions set and the practitioners situation. Article 20th Circ set up insurance asset management companies shall receive complete application documents from the date of the opening of the branch in the 20th, make a decision of approval or disapproval.
    Decides to approve the issue of permit to operate insurance asset management business; the decision not to approve, and shall notify the applicant in writing and state the reasons.
    Opened 21st approved insurance asset management company or insurance asset management company approved by the branch shall hold file insurance asset management business and the license to the Administrative Department for industry and commerce registration license before they can operate. 22nd Circ unified design, printing and issuance, withholding, cancellation or revocation of the permit to operate insurance asset management business.
    Other units and individuals shall be designed, printed, issued, withholding or revocation of the permit to operate insurance asset management business.
    Article 23rd senior managers of insurance asset management companies shall meet the following conditions: (a) the University Bachelor degree, (ii) economic work in more than 10 years experience or more than 5 years experience in finance, insurance, securities, and (iii) is not subjected to criminal punishment or not engaged in economic activities have received administrative punishment and (iv) other conditions stipulated by the Circ.
    Senior managers of insurance asset management companies shall in any other for-profit operators work part-time, but, except as otherwise stipulated by the Circ.
    24th insurance asset management companies shall have one of the following situations should be reported to the approval of the China insurance regulatory Commission: (a) change the articles of incorporation, (ii) change or hold company shares 10% per cent of the shareholders of the investors, (iii) change of business scope and (iv) revoke branch; (e) change of place; (vi) replacement of senior management.
    25th insurance asset management companies shall dissolution, termination is revoked or declared bankrupt according to law, the fiduciary management of insurance funds do not belong to the liquidation of property. 26th article dissolution of insurance asset management companies shall, should set up a group.
    Liquidation supervised by the Circ.
    Insurance asset management companies have been revoked, CIRC organizing shareholders in a timely manner, relevant departments and related professionals to set up a group. Insurance asset management company is declared bankrupt according to law by the people's Court shall organize liquidation.

    27th the liquidation group shall notify the creditors since its founding in the 10th, and in 60 days notice in the newspapers specified by the CIRC on at least 3 times.
    Announcements should be approved by the China insurance regulatory Commission.
    The liquidating Committee shall delegate to be trustworthy accounting firms and other professional intermediaries, to evaluate the debts and assets of the company.
    28th insurance asset management company dissolved, disbanded or declared bankrupt, its liquidation with creditor's rights and debts, in accordance with the relevant provisions of laws and regulations.
    Third chapter business range and business rules 29th article insurance assets management company business range including following all or part business: (a) trustee management using its shareholders of Yuan, and foreign currency insurance funds; (ii) trustee management using its shareholders control of insurance company of funds; (three) management using owned Yuan, and foreign currency funds; (four) China Circ approved of other business; (five) State other sector approved of business.
    Article 30th utilization of insurance fund management limited to bank deposits, trading Government bonds, financial bonds and other fund application form prescribed by the State Council.
    31st for use of foreign exchange funds of an insurance asset management company business and other foreign exchange businesses shall be approved by the State administration of foreign exchange.
    Article 32nd insurance asset management company's own funds and entrusted with the management of funds in the investment channels for the same total investment ratio and a single investment the investment proportion shall be calculated separately.
    Insurance company commissioned using funds and own funds management in the investment channels for the same total investment ratio and a single investment the investment ratio should be consolidated separately.
    33rd insurance company and its principal insurance asset management companies shall provide independent trustees.
    Custodian shall meet the conditions stipulated by the CIRC, commercial banks or other financial institutions.
    34th insurance asset management company managing funds should be managed separately by a different investment manager, accounts, respectively: (a) own funds and entrusted with the management of insurance funds; (b) entrusted the same insurance company insurance fund of a different nature.
    Insurance asset management companies shall be equitable treatment of their management of insurance funds.
    35th insurance asset management company for insurance fund management, utilization and disposition of property or by other means, should be included in the insurance fund.
    Outside the paid except in accordance with the contract and insurance asset management companies entrusted with the management of insurance funds for their own benefit, benefits under the fiduciary management of insurance funds.
    Article 36th insurance asset management companies entrusted with the management of insurance funds, Trustees managed insurance fund shall enter into a written contract.
    Shall be separately formulated by the CIRC guidelines on the content and format of the written contract.
    37th insurance asset management company in accordance with the contract, asset management fees, and asset management fee will be charged to the CIRC report.
    Asset management fees shall be determined in accordance with equitable principles.
    The CIRC may develop standards for insurance asset management fees.
    38th article insurance assets management company shall not has following behavior: (a) provides guarantees; (ii) commitment trustee management of funds not by loss or guarantee minimum returns; (three) will trustee management of insurance funds turned delegate; (four) using trustee insurance funds for client yiwai of third people seek interests; (five) and shareholders, and delegate insurance funds management using of insurance company Zhijian or manipulation different source of trustee funds each other for funds using trading;
    (F) asset management fees on behalf of collusion with the trustee or other ways of obtaining illicit benefits; (VII) relevant State laws and regulations and other acts prohibited by regulators. 39th because of insurance asset management companies in violation of the relevant provisions or the contract, resulting in losses in insurance funds and insurance asset management companies shall compensate for the losses.
    Before loss without compensation shall not be paid.
    40th insurance asset management companies manage the use of insurance capital business complete records and entrusted with the contract of insurance funds shall be preserved for more than 15 years.
    41st insurance asset management companies shall periodically under contract reports entrusted management of insurance funds utilization and disposition, and income and expenditure.
    Clients have the right to access, copy or copy to their clients accounts and other documents relating to the insurance fund, and shall be entitled to require the trustee to make instructions.
    42nd insurance asset management company of its own funds and entrusted with the management of the Insurance Fund's year-end financial report shall be audited by an accounting firm.
    Article 43rd insurance companies and insurance asset management funds managed for clients and the insurance funds and information provided in accordance with the duty of confidentiality.
    44th insurance asset management company as the trustee management, utilization and disposition of claims arising out of entrusted funds may not be debts arising out of insurance asset management company-owned property to offset.
    Insurance asset management company as the trustee management, utilization and disposition of the different debt arising out of the client's property, shall not be set off against each other.
    Insurance asset management companies and other social organizations and individuals of civil disputes, fiduciary insurance funds shall not be used for the management of seized and frozen, satisfaction, and so on.
    The fourth chapter risk control and supervision article 45th insurance asset management companies shall establish a sound corporate governance structure and effective internal control system, and establishment of investment decisions and risk control sectors and establish mutual supervision and restriction mechanism.
    Article 46th insurance asset management companies shall strengthen information construction and setting up of investment decisions, capital using financial accounting information and management systems.
    Insurance asset management companies shall have the security measures associated with business operations.
    47th insurance asset management companies shall be established in accordance with relevant provisions of the Board of supervisors. Clients can be entrusted with the management of insurance funds of insurance asset management companies established the supervisory staff.
    Supervision supervision of insurance asset management companies on behalf of the client to perform the contract, but it cannot interfere in the normal business of insurance asset management companies.
    48th insurance asset management company has the right to attend meetings of the asset-liability management departments of the Conference.
    49th insurance asset management companies shall be in insurance fund management contracts and managed within 20th as of the date the contract is signed, China insurance regulatory Commission submitted copies of the contracts.
    50th insurance asset management companies shall, according to the China insurance regulatory Commission to submit balance sheets, profit and loss accounts, business statistics, financial analysis reports and other relevant reports, and other information.
    Insurance asset management submissions separately released by the CIRC report content and format.
    51st Circ supervision and inspection of insurance asset management companies to take regulatory and non-regulatory methods.
    Accounting firms and other professional intermediaries Circ may delegate authority to check the insurance asset management companies.
    52nd of insurance companies and insurance asset management companies in violation of the rules and relevant laws and regulations, China insurance regulatory Commission in accordance with the Act and related regulations giving insurance companies and insurance asset management companies and senior managers and persons directly responsible for administrative penalties.
                                            Fifth chapter supplementary articles article 53rd since the provisions take effect on June 1, 2004.