Chapter I General Provisions
Article 1 These Measures are formulated in accordance with relevant laws and administrative regulations for the purpose of regulating the investment behavior of qualified foreign institutional investors in China securities market and promoting the development of China securities market.
Article 2 The term "qualified foreign institutional investors" as mentioned in these Measures refers to China's overseas fund management institutions, insurance companies, securities companies and other asset management institutions that meet the requirements of these Measures and are approved by China Securities Regulatory Commission (hereinafter referred to as China Securities Regulatory Commission) to invest in China's securities market and approved by the State Administration of Foreign Exchange (hereinafter referred to as the State Administration of Foreign Exchange).
Article 3 Qualified investors shall entrust domestic commercial banks as asset custodians and domestic securities companies to handle domestic securities trading activities.
Article 4 Qualified investors must abide by the laws, regulations and other relevant provisions of China.
Article 5 The China Securities Regulatory Commission shall supervise and administer the domestic securities investment of QFII according to law, and the State Administration of Foreign Exchange shall administer the foreign exchange of the domestic securities investment of QFII according to law.
Chapter II Qualifications and Approval Procedures
Article 6 To apply for the qualification of qualified investors, the following conditions shall be met:
(1) The applicant's financial stability, good credit standing and asset size meet the requirements of the China Securities Regulatory Commission;
(2) The employees of the applicant meet the relevant qualification requirements of the country or region where they are located;
(3) The applicant has a sound governance structure, a sound internal control system and standardized business conduct, and has not been severely punished by the regulatory authorities in the past three years;
(4) The laws and regulatory systems of the country or region where the applicant is located are perfect, and its securities regulatory agency has signed a memorandum of understanding on regulatory cooperation with the China Securities Regulatory Commission and maintained an effective regulatory cooperation relationship;
(five) other conditions stipulated by the China Securities Regulatory Commission in accordance with the principle of prudent supervision.
Article 7 To apply for QFII qualification and investment quota, the applicant may submit documents to the China Securities Regulatory Commission and the State Administration of Foreign Exchange respectively through the custodian.
Article 8 The China Securities Regulatory Commission shall, within 20 working days from the date of receiving the complete application documents, examine the application materials, solicit the opinions of the State Administration of Foreign Exchange, and make a decision on approval or disapproval. If it decides to approve, it will issue a securities investment business license; If it decides not to approve, it shall notify the applicant in writing.
Article 9 An applicant shall, within 65,438+0 years from the date of obtaining the securities investment business license, apply to the State Administration of Foreign Exchange for the investment quota through the custodian.
The State Administration of Foreign Exchange shall, within 20 working days from the date of receiving the complete application documents, examine the application materials, solicit the opinions of the China Securities Regulatory Commission, and make a decision on approval or disapproval. If it decides to approve, it shall give a written reply and issue a foreign exchange registration certificate; If it decides not to approve, it shall notify the applicant in writing.
Article 10 In order to encourage medium and long-term investment, priority shall be given to supporting long-term fund management institutions such as pension funds, insurance funds, mutual funds and charitable funds that meet the requirements of these Measures.
Chapter III Custody, Registration and Settlement
Article 11 A custodian shall meet the following conditions:
(1) Having a special asset custody department;
(2) The paid-in capital is not less than 8 billion yuan;
(3) Having enough full-time personnel familiar with the custody business;
(4) Having the conditions for safe custody of the assets of QFII;
(5) Having safe and efficient liquidation and delivery capabilities;
(6) Having the qualification of a designated foreign exchange bank and engaging in RMB business;
(7) There is no record of major violation of foreign exchange control regulations in the last three years.
A domestic branch of a foreign-funded commercial bank that has been operating continuously in China for more than 3 years may apply to become a custodian, and its paid-in capital shall be calculated according to its overseas head office.
Article 12 The qualification of custodian must be approved by the China Securities Regulatory Commission and the State Administration of Foreign Exchange. After receiving the complete application documents, the China Securities Regulatory Commission will countersign the State Administration of Foreign Exchange within 30 working days to make a custody qualification license.
Article 13 A custodian shall perform the following duties:
(1) Keeping all assets entrusted by QFII;
(2) Handling foreign exchange settlement, sale, receipt and payment and RMB fund settlement business of qualified investors;
(three) to supervise the investment operation of qualified investors, and report to the China Securities Regulatory Commission and the State Administration of Foreign Exchange in a timely manner if their investment instructions are illegal or illegal;
(4) Report the remittance, remittance, settlement and sale of QFII funds to the State Administration of Foreign Exchange within 2 working days from the date of remittance and remittance of principal or income by QFII;
(5) Report to the State Administration of Foreign Exchange on the income and expenditure and asset allocation of QFII's foreign exchange accounts and RMB special accounts within 8 working days after the end of each month, and report to the China Securities Regulatory Commission on the investment and transaction of securities accounts;
(six) within three months after the end of each fiscal year, prepare the annual financial report on the domestic securities investment of qualified investors in the previous year, and submit it to the China Securities Regulatory Commission and the State Administration of Foreign Exchange;
(7) Keeping records of QFII's capital remittance, remittance, exchange, foreign exchange receipts and payments and other relevant information for at least 20 years;
(eight) according to the provisions of the State Administration of foreign exchange, to declare the balance of payments statistics;
(nine) other duties stipulated by the China Securities Regulatory Commission and the State Administration of Foreign Exchange according to the principle of prudential supervision.
Article 14 A custodian must strictly separate its own assets from the assets entrusted for management, and implement separate account custody for the assets entrusted for management.
Article 15 Each QFII can only entrust 1 custodian, and can change the custodian.
Article 16 Qualified investors may apply for opening a securities account at a securities registration and settlement institution. The securities account can be a real name account or a nominal holder account.
The nominal holder shall, within 8 working days after the end of each quarter, report to the China Securities Regulatory Commission and the stock exchange the name, registered place, asset allocation and securities investment of the actual investor or fund it represents.
Article 17 A QFII shall entrust an institution that has obtained the qualification of clearing participant of a securities registration and clearing institution to conduct fund settlement. The institution shall, within 5 working days after opening the RMB settlement fund account, file the account opening with the State Administration of Foreign Exchange.
Chapter IV Investment and Operation
Eighteenth qualified investors can invest in RMB financial instruments recognized by the China Securities Regulatory Commission within the approved investment quota.
Article 19 QFII may entrust domestic securities companies and other investment management institutions to manage domestic securities investment.
Twentieth qualified investors to invest in domestic stocks, should comply with the China Securities Regulatory Commission and other relevant provisions of the state shareholding ratio restrictions.
Article 21 When fulfilling the obligation of information disclosure, overseas investors shall account for the domestic listed shares and overseas listed shares of the same listed company, and abide by the laws and regulations on information disclosure.
Article 22 Securities companies and other institutions shall keep the entrustment records and transaction records of qualified investors for not less than 20 years.
Article 23 QFII's domestic securities investment activities shall comply with the relevant provisions of stock exchanges and securities registration and settlement institutions.
Chapter V Fund Management
Article 24 A QFII shall, with the approval of the State Administration of Foreign Exchange, open a foreign exchange account and a special RMB account with the custodian.
Article 25 The scope of income and expenditure of QFII's foreign exchange accounts and RMB special accounts shall comply with the relevant provisions of the State Administration of Foreign Exchange.
Article 26 Qualified investors shall remit the principal within the time specified by the State Administration of Foreign Exchange. The remitted principal shall be in convertible currency approved by the State Administration of Foreign Exchange, and the amount shall be limited to the approved amount.
If a QFII fails to remit the principal in full within the time specified by the State Administration of Foreign Exchange, it shall make a written explanation to the China Securities Regulatory Commission and the State Administration of Foreign Exchange, and take the actual remittance amount as the approved amount; The difference between the approved amount and the actual remitted amount shall not be remitted without the approval of the State Administration of Foreign Exchange.
Article 27 Qualified investors may apply to the State Administration of Foreign Exchange for remittance of funds from the date when the time limit stipulated by the State Administration of Foreign Exchange expires, unless otherwise stipulated by the State Administration of Foreign Exchange.
Article 28 The SAFE may adjust the time, amount and time limit for the remittance of QFII's principal according to the economic and financial situation in China, the relationship between supply and demand in the foreign exchange market and the international balance of payments, and according to the arrangement of the People's Bank of China.
Chapter VI Supervision and Administration
Article 29 The China Securities Regulatory Commission and the State Administration of Foreign Exchange may, according to law, require qualified investors, custodians, securities companies and other institutions to provide relevant information of qualified investors, and make necessary inquiries and inspections.
Thirtieth qualified investors in any of the following circumstances, shall be reported to the China Securities Regulatory Commission and the State Administration of Foreign Exchange for the record within 5 working days after the occurrence:
(1) Changing the custodian;
(2) Changing the legal representative;
(3) the change of the controlling shareholder.
(4) Adjusting the registered capital;
(five) involving major litigation and other major events;
(6) Being severely punished abroad;
(7) Other circumstances stipulated by the China Securities Regulatory Commission and the State Administration of Foreign Exchange.
Article 31 A QFII shall reapply for a securities investment business license under any of the following circumstances:
(1) Changing the name of the institution;
(2) being absorbed and merged by other institutions;
(3) Other circumstances stipulated by the China Securities Regulatory Commission and the State Administration of Foreign Exchange.
During the period of re-applying for the securities investment business license, qualified investors can continue to conduct securities trading. However, according to the principle of prudential supervision, the China Securities Regulatory Commission thinks it is necessary to suspend.
Article 32 A QFII shall return its securities investment business license and foreign exchange registration certificate to the China Securities Regulatory Commission and the State Administration of Foreign Exchange respectively under any of the following circumstances:
(1) The applicant fails to apply for the investment quota from the SAFE within 1 year after obtaining the securities investment business license;
(2) The institution is dissolved, goes into bankruptcy proceedings or is taken over by the receiver;
(3) QFII reapply for license;
(4) QFII has committed major illegal acts and other circumstances identified by the China Securities Regulatory Commission and the State Administration of Foreign Exchange.
Article 33 If there are serious violations of laws and regulations in the securities accounts managed by QFII, the China Securities Regulatory Commission may take measures such as restricting the trading behavior of relevant securities accounts, and the State Administration of Foreign Exchange may take measures such as restricting the remittance and inflow of its funds.
Article 34 If a custodian commits serious violations of laws and regulations, the China Securities Regulatory Commission and the State Administration of Foreign Exchange will jointly make a decision to disqualify him according to law.
Article 35 Qualified investors, custodians, securities companies, etc. In violation of these measures, the China Securities Regulatory Commission and the State Administration of Foreign Exchange shall give corresponding administrative punishment according to law.
Chapter VII Supplementary Provisions
Article 36 The provisions of these Measures shall apply to institutional investors established in Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan Province Province who engage in securities investment in the Mainland.
Article 37 These Measures shall come into force as of September 6, 2006, and the Interim Measures for the Administration of Domestic Securities Investment by Qualified Foreign Institutional Investors jointly issued by China Securities Regulatory Commission and China People's Bank on October 5, 2002 shall be abolished at the same time.