China Securities Regulatory Commission, Statement by a CSRC Spokesperson on Issues Relevant to the Administration of Securities Investments in China by Qualified Foreign Institutional Investors

Issued: March 19 2003

Main contents: The Statement further details on the application documents required for the status of a qualified institutional investor (QFII), annual inspection of the securities investment business permit, issues concerning the domestic securities investments, information disclosure and auditing of QFIIs, and the application and withdrawal of custodians. The Statement clarifies what other renminbi-denominated financial instruments that QFIIs may, with CSRC approval, invest in. Such financial instruments are closed-end and open-ended funds, additional share issues, rights issues, initial public offerings and convertible bonds.
Related legislation: Administration of Securities Investments in China by Qualified Foreign Institutional Investors Tentative Procedures, Nov 5 2002, CLP 2002 No.10 p46; Questions Relevant to Commercial Bank Application for Engaging in Custodian Services for Securities Investments in China of Qualified Foreign Institutional Investors Circular, Dec 17 2002, CLP 2003 No.1 p6; Foreign Exchange Control on Securities Investments in China by Qualified Foreign Institutional Investors Tentative Provisions, Nov 28 2002, CLP 2002 No.10 p7; Shenzhen Stock Exchange, Securities Transactions by Qualified Foreign Institutional Investors Implementing Rules, Dec 1 2002, CLP 2002 No.10 p10; Shanghai Stock Exchange, Securities Transactions by Qualified Foreign Institutional Investors Implementing Rules, Dec 1 2002, CLP 2002 No.10 p11; Registration and Settlement for Securities Investments in China by Qualified Foreign Institutional Investors Implementing Rules, Dec 1 2002, CLP 2002 No.10 p7 and Administration of Disclosure of Information on the Change of Shareholdings in Listed Companies Procedures, Sep 28 2002, CLP 2002 No.9 p5