China Securities Regulatory Commission, Several Questions Regarding Application for Establishment of Fund Management Companies Circular

Issued: 25 May 2001

Main contents: The Circular addresses certain questions arising from Paragraph Seven of Article 24 of the Administration of Securities Investment Funds Tentative Procedures. It clarifies that while the main sponsors of a fund management company shall be securities companies or trust and investment companies, other institutions may also participate (Item 1). In terms of the forms of organization, the Circular provides that a fund management company may be established in the form of a company limited by shares (Item 2). The Circular requires that the applicant for the establishment of a fund management company shall provide an undertaking of self-regulation to the China Securities Regulatory Commission (CSRC) no less than 12 months before the proposed date of the establishment of the fund management company (Item 5). The applicant's compliance with the undertaking of self-regulation prior to the submission of its application to CSRC will be a factor in the CSRC's acceptance or rejection of the application (Item 6).