China Securities Regulatory Commission, Contents and Formats for Information Disclosure of Securities Investment Funds Guidelines (No.2) - Contents and Format of Annual Reports

Issued: June 15 2004
Effective: July 1 2004
Applicability: Where a fund of which shares of the fund are publicly sold, and record filing procedures are lawfully carried out, within the People's Republic of China in accordance with the Securities Investment Fund Law, the fund managers shall compile and disclose annual reports in accordance with the requirements of the Guidelines (Article 2).

Main contents: The Guidelines specify the minimum requirements for information disclosure in an annual report of a fund (Article 4). It requires the fund manager to disclose in the report the main accounting data and financial indicators of the fund for the latest three fiscal years (starting from the time when the fund contract took effect if the fund contract has come into effect for less than three years), including the net earnings of the fund for the current period, net earnings per share for the current period, distributable earnings of the fund at the end of the period, distributable earnings per share at the end of the period, net asset value of the fund at the end of the period, net value per share at the end of the period, weighted average return on net value of the fund, growth rate of the net value per share for the current period, and growth rate of the cumulative net value per share (Article 16). The distribution of the fund's earnings in the latest three years shall also be disclosed (Article 18). The report shall also include charts comparing the growth rate of the net value per share with the base rate of return at different stages as well as their fluctuations (Article 17). The fund manager is also required to explain in the annual report the fund's investment strategies and performances in view of the situation of the macroeconomy and the securities market, and make brief forecasts of the macroeconomy, securities market and industry trend (Articles 21 and 22). An annual report shall be signed by at least two-thirds of the independent directors of the fund manager for consent. If an individual director is unable to guarantee or objects to the truthfulness, accuracy or completeness of the contents of the annual report, she shall state her reasons and opinion separately (Article 3). The annual report and the summary thereof of a fund shall be compiled and announced on designated media within 90 days after the end of each accounting year (Article 8).
Related legislation: PRC Securities Investment Fund Law, Oct 28 2003, CLP 2003 No.10 p43 and Administration of Information Disclosure of Securities Investment Funds Procedures, Jun 8 2004, CLP 2004 No.6 p7
Repealed legislation: Part Three: Contents and Format of Annual Reports of the China Securities Regulatory Commission, Administration of Securities Investment Funds Tentative Procedures Implementing Rules (No. 5): Information Disclosure for Securities Investment Funds Guidelines, Mar 12 1999, CLP 1999 No.3 p8