Administration of Investment and Equity Participation in Chinese-invested Financial Institutions by Offshore Financial Institutions Procedures
境外金融机构投资入股中资金融机构管理办法
The Procedures represents the China Banking Regulatory Commission's administration of offshore financial institutions' investment and equity participation in Chinese-invested banks, credit cooperatives, and finance companies. Rules are stipulated as to the eligibility of investing offshore institutions (including the year-end total assets, credit ratings, profitability, capital adequacy ratio) and the maximum investment and equity participation ratio. CBRC's approval is required under the Procedures for the application for foreign investment, the change in registered capital or equity structure, as well as shareholders composition. Hong Kong, Macao and Taiwan institutions are regarded as foreign institutions under the Procedures.
(Promulgated by the China Banking Regulatory Commission on December 8 2003 and effective as of December 31 2003.)
(中国银行业监督管理委员会于二零零三年十二月八日发布，自二零零三年十二月三十一日起施行。)
Article 1:These Procedures are formulated for the purposes of regulating offshore financial institutions¡¯ investment and equity participation in Chinese-invested financial institutions and optimizing the capital structure of Chinese-invested financial institutions.
第一条为规范境外金融机构投资入股中资金融机构的行为，优化中资金融机构资本结构，制定本办法。
Article 2:These Procedures apply to offshore financial institutions investing and making an equity participation in legally established Chinese-invested financial institutions.
第二条境外金融机构向已依法设立的中资金融机构投资入股，适用本办法。
For the purposes of these Procedures, ¡°offshore financial institutions¡± is defined to include international financial institutions and foreign financial institutions. ¡°International financial institutions¡± means the World Bank and its institutions, other inter-governmental development-oriented financial institutions and other international financial institutions recognized by the China Banking Regulatory Commission. ¡°Foreign financial institutions¡± means financial holding companies, commercial banks, securities companies, insurance companies and funds registered and established in foreign countries, and other foreign financial institutions recognized by the China Banking Regulatory Commission.
本办法所称的境外金融机构包括国际金融机构和外国金融机构，国际金融机构是指世界银行及其附属机构、其它政府间开发性金融机构及中国银行业监督管理委员会认可的其它国际金融机构；外国金融机构是指在外国注册成立的金融控股公司、商业银行、证券公司、保险公司、基金及中国银行业监督管理委员会认可的其它外国金融机构。
For the purposes of these Procedures, ¡°Chinese-invested financial institutions¡± means Chinese-invested commercial banks, urban credit cooperatives, rural credit cooperatives, trust and investment companies, enterprise group finance companies and lease-financing companies that are legally established within the territory of China, and other Chinese-invested financial institutions established with the approval of the China Banking Regulatory Commission.
本办法所称的中资金融机构是指依法在中国境内设立的中资商业银行、城市信用社、农村信用社、信托投资公司、企业集团财务公司、金融租赁公司，以及中国银行业监督管理委员会批准设立的其它中资金融机构。
For the purposes of these Procedures, ¡°investment and equity participation ratio¡± means the proportion of the amount of capital contribution or the proportion of shareholding to the total paid-up capital or total equity of a Chinese-invested financial institution.
本办法所称的投资入股比例是指出资额或者所持股份占中资金融机构的实收资本总额或者股份总额的比例。
Article 3:The China Banking Regulatory Commission shall regulate investment and equity participation in Chinese-invested financial institutions by offshore financial institutions in accordance with the law.
第三条中国银行业监督管理委员会依法对境外金融机构投资入股中资金融机构的行为进行监督管理。
Article 4:To invest or make an equity participation in Chinese-invested financial institutions, offshore financial institutions shall obtain approval from the China Banking Regulatory Commission.
第四条境外金融机构投资入股中资金融机构，应当经中国银行业监督管理委员会批准。
Article 5:Offshore financial institutions shall invest and make an equity participation in Chinese-invested financial institutions based on honesty and good faith and with a medium to long-term investment purpose.
第五条境外金融机构向中资金融机构投资入股，应当基于诚实信用并以中长期投资为目标。
Article 6:Offshore financial institutions shall make the capital contribution in the form of monetary funds when investing and making an equity participation in Chinese-invested financial institutions.
第六条境外金融机构投资入股中资金融机构应当用货币出资。
Article 7:Offshore financial institutions that invest and make an equity participation in Chinese-invested financial institutions shall meet the following conditions:
第七条境外金融机构投资入股中资金融机构，应当具备下列条件：
(1) the year-end total assets of the recent year shall in principle be not less than US$10 billion for investment and equity participation in Chinese-invested commercial banks, not less than
US$1 billion for investment and equity participation in Chinese-invested urban credit cooperatives or rural credit cooperatives and not less than US$1 billion for investment and equity participation in Chinese-invested non-bank financial institutions;
(一) 投资入股中资商业银行的，最近一年年末总资产原则上不少于100亿美元；投资入股中资城市信用社或农村信用社的，最近一年年末总资产原则上不少于10亿美元；投资入股中资非银行金融机构的，最近一年年末总资产原则上不少于10亿美元；
(2) their long-term credit ratings are appraised to be good in the recent two years by an international rating agency recognized by the China Banking Regulatory Commission;
(二) 中国银行业监督管理委员会认可的国际评级机构最近二年对其给出的长期信用评级为良好；
(3) they have been profitable for the recent two accounting years;
(三) 最近两个会计年度连续盈利；
(4) in the case of commercial banks, their capital adequacy ratio shall be not less than 8%; in the case of non-bank financial institutions, their total amount of capital shall be not less than 10% of their total amount of risk-weighted assets;
(四) 商业银行资本充足率不低于8%；非银行金融机构资本总额不低于加权风险资产总额的10%；
(5) they must have a sound internal control system;
(五) 内部控制制度健全；
(6) the place where they are registered must have a good financial institution regulatory system;
(六) 注册地金融机构监督管理制度完善；
(7) the country (region) where they are located must have a sound economic environment; and
(七) 所在国(地区)经济状况良好；
(8) other prudential conditions stipulated by the China Banking Regulatory Commission.
(八) 中国银行业监督管理委员会规定的其它审慎性条件。
The China Banking Regulatory Commission may adjust the criteria for offshore financial institutions to invest and make an equity participation in Chinese-invested financial institutions according to the financial risk status and regulatory requirements.
中国银行业监督管理委员会根据金融业风险状况和监管需要，可以调整境外金融机构投资入股中资金融机构的资格条件。
Article 8:The investment and equity participation ratio made by a single offshore financial institution in a Chinese-invested financial institution shall not exceed 20%.
第八条单个境外金融机构向中资金融机构投资入股比例不得超过20%。
Article 9:If the investment and equity participation ratio of more than one offshore financial institution in an unlisted Chinese-invested financial institution reaches or exceeds 25% in aggregate, such unlisted financial institution shall be regulated in the same manner as a foreign-invested financial institution.
第九条多个境外金融机构对非上市中资金融机构投资入股比例合计达到或超过25%的，对该非上市金融机构按照外资金融机构实施监督管理。
If the investment and equity participation ratio of more than one offshore financial institution in a listed Chinese-invested financial institution reaches or exceeds 25% in aggregate, such listed financial institution shall continue to be regulated in the same manner as a Chinese-invested financial institution.
多个境外金融机构对上市中资金融机构投资入股比例合计达到或超过25%的，对该上市金融机构仍按照中资金融机构实施监督管理。
Article 10:When an offshore financial institution invests and makes an equity participation in a Chinese-invested financial institution, the Chinese-invested financial institution absorbing the foreign investment shall act as the applicant and apply to the China Banking Regulatory Commission:
第十条境外金融机构投资入股中资金融机构，由吸收投资的中资金融机构作为申请人，向中国银行业监督管理委员会提出申请：
(1) wholly state-owned commercial banks, share system commercial banks and non-bank financial institutions regulated directly by the China Banking Regulatory Commission that absorb the investment and equity participation from offshore financial institutions, shall apply directly to the China Banking Regulatory Commission for approval; and
(一) 国有独资商业银行、股份制商业银行及中国银行业监督管理委员会直接监管的非银行金融机构吸收境外金融机构投资入股的，直接向中国银行业监督管理委员会申请批准；
(2) Chinese-invested financial institutions other than those stipulated in Item (1) hereof that absorb the investment and equity participation from offshore financial institutions, shall apply to the local provincial-level authorities authorized by the China Banking Regulatory Commission and, upon examination and verification, shall submit the application to the China Banking Regulatory Commission for approval.
(二) 本条第一项规定以外的中资金融机构吸收境外金融机构投资入股的，向所在地中国银行业监督管理委员会省级派出机构提出申请，经审核后报中国银行业监督管理委员会批准。
Article 11:The following documents shall be submitted by the Chinese-invested financial institution when applying to the China Banking Regulatory Commission for absorbing the investment and equity participation:
第十一条中资金融机构向中国银行业监督管理委员会提出吸收投资入股申请时，应提交下列文件：
(1) an application of the Chinese-invested financial institution for absorbing the investment and equity participation;
(一) 中资金融机构吸收投资入股的申请书；
(2) a resolution of the shareholders¡¯ meeting or the board of directors of the Chinese-invested financial institution that approves the absorption of the investment, or the approval document from the superior department in charge;
(二) 中资金融机构股东大会或董事会同意吸收投资的决议或上级主管部门的批准文件；
(3) a resolution of the shareholders¡¯ meeting or the board of directors of the offshore financial institution that approves the investment and equity participation in the Chinese-invested financial institution;
(三) 境外金融机构股东大会或董事会同意向中资金融机构投资入股的决议；
(4) a letter of intent signed by both parties;
(四) 双方签定的意向性协议；
(5) the offshore financial institution¡¯s annual reports or audited balance sheets, profit statements and other financial statements of the recent three years;
(五) 境外金融机构最近三年的年报或经审计的资产负债表、利润表等财务报表；
(6) material regarding the source of funds and operating conditions of the offshore financial institution; and
(六) 境外金融机构的资金来源、经营情况等资料；
(7) other relevant material as required by the China Banking Regulatory Commission.
(七) 中国银行业监督管理委员会要求的其它相关数据。
If the investor is a foreign financial institution, the Chinese-invested financial institution shall also submit a rating report on the foreign financial institution for the recent two years prepared by an international rating agency recognized by the China Banking Regulatory Commission and the approval documents of the financial regulatory authority of the place where the foreign financial institution is registered.
投资人为外国金融机构的，中资金融机构还应当提交经中国银行业监督管理委员会认可的国际评级机构对该外国金融机构最近二年的评级报告和注册地金融监管当局的批准文件。
Article 12:The China Banking Regulatory Commission shall make a decision on approval or disapproval within three months of receipt of the complete application documents. If the China Banking Regulatory Commission decides not to approve the application, it shall notify the applicant in writing and explain the reasons therefor.
第十二条中国银行业监督管理委员会自接到完整的申请文件之日起3个月内作出批准或不批准的决定；决定不批准的，应当书面通知申请人并说明理由。
Article 13:The offshore financial institution shall transfer the funds in full to the account of the Chinese-invested financial institution within 60 working days of receipt of the approval from the China Banking Regulatory Commission, and an accounting firm recognized by the China Banking Regulatory Commission shall verify the same.
第十三条境外金融机构应当在收到中国银行业监督管理委员会的批准决定后60个工作日内将资金足额划入中资金融机构账户，并经中国银行业监督管理委员会认可的会计师事务所验证。
Article 14:If the registered capital or equity structure of a Chinese-invested financial institution is adjusted due to the investment and equity participation of an offshore financial institution, the Chinese-invested financial institution shall go through the formalities regarding the change according to the relevant provisions.
第十四条中资金融机构因境外金融机构投资入股而变更注册资本或股权结构的，应当依照有关规定办理变更手续。
Article 15:If a Chinese-invested financial institution violates these Procedures by changing shareholders or adjusting equity structure without authorization, it shall be penalized by the China Banking Regulatory Commission according to relevant provisions.
第十五条中资金融机构违反本办法，擅自变更股东、调整股权结构的，由中国银行业监督管理委员会根据有关规定予以处罚。
Article 16:If an offshore financial institution that has already invested and made an equity participation in a Chinese-invested financial institution is to increase the percentage of its shareholding, the relevant provisions of these Procedures shall apply.
第十六条已向中资金融机构投资入股的境外金融机构增加持股比例的，适用本办法有关规定。
Article 17:These Procedures shall apply to financial institutions from Hong Kong, Macao and Taiwan that invest and make an equity participation in Chinese-invested financial institutions; if there are provisions otherwise stipulated by the State Council, such provisions shall prevail.
第十七条香港、澳门和台湾地区的金融机构投资入股中资金融机构，适用本办法；国务院另有规定的，适用其规定。
Article 18:These Procedures shall not apply to purchase of negotiable shares of listed Chinese-invested financial institutions by qualified foreign institutional investors.
第十八条合格境外机构投资者购买上市中资金融机构流通股不适用本办法。
Article 19:Investment and equity participation in auto finance companies shall be handled in accordance with the relevant provisions of the Administration of Auto Finance Companies Procedures.
第十九条投资入股汽车金融公司，依照《汽车金融公司管理办法》的相关规定执行。
Article 20:The China Banking Regulatory Commission shall be responsible for the interpretation of these Procedures.
第二十条本办法由中国银行业监督管理委员会负责解释。
Article 21:These Procedures shall come into effect as of December 31 2003. If there is any discrepancy between these Procedures and relevant documents issued before the promulgation of these Procedures, these Procedures shall prevail.
第二十一条本办法自2003年12月31日起施行。本办法施行前颁布的有关文件与本办法规定不一致的，按照本办法执行。
China Law & Practice acknowledges the assistance of Clifford Chance LLP, who kindly supplied an earlier draft of this translation.
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