China Securities Regulatory Commission, Administration of Information Disclosure of Securities Investment Funds Procedures

Promulgated: June 8 2004

Effective: July 1 2004

Main contents: The Procedures stipulate that parties with an obligation to disclose information of a securities investment fund are its manager, its custodian, its shareholders that convene the fund shareholders' general meeting, and other natural persons, legal persons and other organizations specified by laws, administrative regulations and the China Securities Regulatory Commission (CSRC) (Article 2). Such person is required to disclose necessary fund information through such media as national newspapers and periodicals designated by the CSRC and the internet websites of the manager and custodian of the fund within the time period prescribed by the CSRC so that investors are able to read or copy the disclosed information according to the time and methods agreed in the fund contract (Article 3). The scope of information subject to public disclosure covers the prospectus of the fund; the fund contract; the fund custodianship agreement; the announcement of the sale of the fund shares; the details on the raising of funds; the announcement of the fund contract coming into effect; the announcement of the listing of the fund shares; the net asset value of the fund; the net value of the fund shares; the prices for purchase and redemption of the fund shares; regular reports of the fund including annual reports, interim reports and quarterly reports; ad hoc reports; resolutions of the fund shareholders' general meeting; significant personnel changes of the fund manager and the fund custodianship department of the fund custodian; and lawsuits involving the fund manager, the fund property and the fund custodianship business. Parts Three to Six details the information disclosure of the raising of funds and fund operations, ad hoc fund disclosure as well as the administration of the disclosure affairs. After an application for fund raising is verified by the CSRC, the fund manager is required to make public the prospectus of the fund and abstracts of the fund contract on designated newspapers, periodicals and websites three days prior to the sale of fund shares; and the fund manager and fund custodian should simultaneously publish the fund contract and fund custodianship agreement on their websites (Article 9). In case of a significant event, relevant parties with an obligation to disclose fund information are required to compile and announce ad hoc reports within two days, and at the same time submit the reports to the CSRC and the local agencies of the CSRC for the record.