People's Bank of China, Questions Relevant to Commercial Bank Application for Engaging in Custodian Services for Securities Investments in China of Qualified Foreign Institutional Investors Circular

Issued: December 17 2002
Applicability: The Circular shall, mutatis mutandis, apply to mainland branches of banks from Hong Kong, Macao and Taiwan as well as wholly-owned banks and joint venture banks from such regions (Item Seven).

Main contents: The Circular sets out the application procedures for different types of commercial banks applying to engage in custodian services for securities investments in China of qualified foreign institutional investors (QFII). For wholly foreign-owned banks, joint venture banks and foreign bank branches, application materials shall be submitted in accordance with Article 44 of the PRC Administration of Foreign-funded Financial Institutions Regulations Implementing Rules, including an application letter, detailed description of the proposed services and other materials as required by the People's Bank of China (Item Two). Only one Chinese branch of a foreign bank and only the head office of a wholly foreign-owned bank or a joint venture bank may carry out such custodian services (Item Three).
Related legislation: Administration of Securities Investments in China by Qualified Foreign Institutional Investors Tentative Procedures, Nov 5 2002, CLP 2002 No.10 p46; Commercial Bank Intermediary Services Tentative Provisions, Jun 21 2001, CLP 2001 No.6 p5 and PRC Administration of Foreign-funded Financial Institutions Regulations Implementing Rules, Jan 29 2002, CLP 2002 No.3 p77