China Securities Regulatory Commission, Regulating Securities Transactions in Connection with the Operation of Securities Investment Funds Circular

Issued: 26 February 2001

Main contents: According to the Circular, fund managers must be responsible for the trading operations of the funds under their management and provide reasonable explanations for any unusual transaction that may occur in relation to the funds (Item 3). For the purposes of its daily monitoring of securities trading, a stock exchange shall treat a fund as a single investor and a fund management company as a single investor with several accounts. When a fund or fund management company engages in any unusual transaction, the stock exchange shall give the fund or the fund management company a telephone reminder, written warning or public sanction, or report the same to China Securities Regulatory Commission (Item 5). The trustee of a fund shall also strengthen its supervision over the fund concerned, and if the fund engages in any unusual transaction, the trustee shall give the fund a telephone reminder or a written warning, or report the same to China Securities Regulatory Commission (Item 6).