Measures for the Administration of Securities Investments in China by Qualified Foreign Institutional Investors

合格境外机构投资者境内证券投资管理办法

Qualifications and approval of QFII status are set out in detail. Issues related to asset custody and fund management are also covered.

Clp Reference: 3700/06.08.24 Promulgated: 2006-08-24 Effective: 2006-09-01

(Promulgated by the China Securities Regulatory Commission, People's Bank of China and State Administration of Foreign Exchange on August 24 2006 and effective as of September 1 2006.)

(中国证券监督管理委员会、中国人民银行、国家外汇管理局于二零零六年八月二十四日公布,自二零零六年九月一日起实施。)

Order of the CSRC, PBOC and SAFE No.36

証监会、中国人民银行、外汇局令 第36号

PART ONE: GENERAL PROVISIONS

第一章 总则

Article 1: These Measures are formulated in accordance with relevant laws and administrative regulations in order to regulate acts of investment in the Chinese securities market by qualified foreign institutional investors and to promote the development of the Chinese securities market.

第一条 为了规范合格境外机构投资者在中国境内証券市场的投资行为,促进中国証券市场的发展,根据有关法律、行政法规,制定本办法。

Article 2: For the purposes of these Measures, "qualified foreign institutional investor" (QFII) means a foreign fund management institution, insurance company, securities company or other asset management institution that complies with these Measures, has been approved by the China Securities Regulatory Commission (CSRC) to invest in the Chinese securities market and has obtained a quota approved by the State Administration of Foreign Exchange (SAFE).

第二条 本办法所称合格境外机构投资者(以下简称合格投资者),是指符合本办法的规定,经中国証券监督管理委员会(以下简称中国証监会)批准投资于中国証券市场,并取得国家外汇管理局(以下简称国家外汇局)额度批准的中国境外基金管理机构、保险公司、証券公司以及其他资产管理机构。

Article 3: A QFII shall appoint a domestic commercial bank to act as the custodian of its assets and appoint a domestic securities company to handle its domestic securities trading activities.

第三条 合格投资者应当委托境内商业银行作为托管人托管资产,委托境内証券公司办理在境内的証券交易活动。

Article 4: QFIIs must abide by Chinese laws, regulations and other relevant provisions.

第四条 合格投资者必须遵守中国的法律法规和其他有关规定。

Article 5: The CSRC shall regulate securities investments in China by QFIIs in accordance with the law. SAFE shall, in accordance with the law, impose foreign exchange control on investment quotas, inward and outward remittances of funds and other matters relevant to securities investments in China by QFIIs.

第五条 中国証监会依法对合格投资者的境内証券投资实施监督管理,国家外汇局依法对合格投资者境内証券投资有关的投资额度、资金汇出入等实施外汇管理。

PART TWO: CONDITIONS FOR QUALIFICATIONS AND PROCEDURES FOR EXAMINATION AND APPROVAL

第二章 资格条件和审批程序

Article 6: To apply for QFII status, the applicant shall meet the following conditions:

第六条 申请合格投资者资格,应当具备下列条件:

(1) to have a stable, healthy financial position and a good credit rating, to meet conditions such as those for asset scales prescribed by the CSRC;

(一)  申请人的财务稳健,资信良好,达到中国証监会规定的资产规模等条件;

(2) to have business personnel who meet the relevant business qualification requirements of the country or region in which the applicant is located;

(二)  申请人的从业人员符合所在国家或者地区的有关从业资格的要求;

(3) to have a sound corporate governance structure and a comprehensive internal control mechanism, to carry on business in compliance with law, and not to have received any major punishment during the preceding three years from the regulator;

(三)  申请人有健全的治理结构和完善的内控制度,经营行为规范,近3年未受到监管机构的重大处罚;

(4) to be located in a country or region that has sound legal and regulatory systems, and the securities regulator of which has entered into a memorandum of understanding with the CSRC concerning regulatory cooperation and maintains an effective regulatory cooperation relationship with the CSRC; and

(四)  申请人所在国家或者地区有完善的法律和监管制度,其証券监管机构已与中国証监会签订监管合作谅解备忘录,并保持著有效的监管合作关系;

(5) to meet other conditions prescribed by the CSRC in accordance with the principle of prudent regulation.

(五)  中国証监会根据审慎监管原则规定的其他条件。

Article 7: When applying for QFII status and an investment quota, the applicant may submit the documents through the custodian to, the CSRC and SAFE respectively.

第七条 申请合格投资者资格和投资额度,申请人可以通过托管人分别向中国証监会和国家外汇局报送文件。

Article 8: The CSRC will examine the application materials, seek the opinion of SAFE and render its decision on whether or not to grant its approval within 20 working days from the date of receipt of the complete set of application documents. If the CSRC decides to grant approval, it will issue a securities investment business permit. If the CSRC decides to withhold approval, it will notify the applicant in writing.

第八条 中国証监会自收到完整的申请文件之日起20个工作日内,对申请材料进行审核,并征求国家外汇局意见,作出批准或者不批准的决定。决定批准的,颁发証券投资业务许可証;决定不批准的,书面通知申请人。

Article 9: Within one year from the date of receipt of the securities investment business permit, the applicant shall apply through the custodian to SAFE for an investment quota.

第九条 申请人应当在取得証券投资业务许可証之日起1年内,通过托管人向国家外汇局提出投资额度申请。

SAFE shall examine the application materials, seek the opinion of the CSRC and render its decision on whether or not to grant its approval within 20 working days from the date of receipt of the complete set of application documents. If SAFE decides to grant approval, it will render a written official reply and issue a foreign exchange registration certificate. If SAFE decides to withhold approval, it will notify the applicant in writing.

国家外汇局自收到完整的申请文件之日起20个工作日内,对申请材料进行审核,并征求中国証监会意见,作出批准或者不批准的决定。决定批准的,作出书面批复并颁发外汇登记証;决定不批准的,书面通知申请人。

Article 10: With a view to encouraging medium and long-term investments, primary consideration shall be given to institutions that comply herewith and manage long-term funds, such as retirement funds, insurance funds, mutual funds, charity funds, etc.

第十条 为鼓励中长期投资,对于符合本办法规定的养老基金、保险基金、共同基金、慈善基金等长期资金管理机构,予以优先考虑。

PART THREE: CUSTODY, REGISTRATION AND SETTLEMENT

第三章 托管、登记和结算

Article 11: A custodian shall meet the following conditions:

第十一条 托管人应当具备下列条件:

(1) to have a dedicated asset custody department;

(一)  设有专门的资产托管部;

(2) to have paid-up capital of not less than Rmb8 billion;

(二)  实收资本不少于80亿元人民币;

(3) to have an adequate number of full-time personnel familiar with custody business;

(三)  有足够的熟悉托管业务的专职人员;

(4) to be able to keep safe custody of the assets of the QFII;

(四)  具备安全保管合格投资者资产的条件;

(5) to have the ability to carry out secure, highly efficient clearing and settlement;

(五)  具备安全、高效的清算、交割能力;

(6) to be qualified as a designated foreign exchange bank and qualified to operate renminbi business; and

(六)  具备外汇指定银行资格和经营人民币业务资格;

(7) to have no record of any major violation of exchange control regulations during the most recent three years.

(七)  最近3年没有重大违反外汇管理规定的纪录。

Those China branches of foreign-invested commercial banks that have continuously operated in China for not less than three years may apply to become custodians. The calculations to determine whether they meet the requirement on the amount of paid-up capital shall be performed on the amount of paid-up capital of their foreign head offices.

外资商业银行境内分行在境内持续经营3年以上的,可申请成为托管人,其实收资本数额条件按其境外总行的计算。

Article 12: The examination and approval of the CSRC and SAFE shall be required to obtain qualifications as a custodian. Within 30 working days after receipt of the complete set of application documents, the CSRC shall countersign and issue a custody qualification permit together with SAFE.

第十二条 取得托管人资格,必须经中国証监会和国家外汇局审批。中国証监会收到完整的申请文件后,于30个工作日内会签国家外汇局作出托管资格许可。

Article 13: A custodian shall perform the following duties:

第十三条 托管人应当履行下列职责:

(1) to keep safe all of the assets placed in its custody by the QFII;

(一)  保管合格投资者托管的全部资产;

(2) to handle the relevant foreign exchange settlement, sale, receipt and payment business and renminbi fund settlement business of the QFII;

(二)  办理合格投资者的有关结汇、售汇、收汇、付汇和人民币资金结算业务;

(3) to supervise the QFII's investment operations, and to report to the CSRC and SAFE if the QFII's investment instructions violate laws or regulations in a timely manner;

(三)  监督合格投资者的投资运作,发现其投资指令违法、违规的,及时向中国証监会和国家外汇局报告;

(4) within two working days of remittance of principal into China or remittance of principal or earnings out of China by the QFII, to inform SAFE of the particulars of the funds so remitted and the settlement or sale of foreign exchange by the QFII;

(四)  在合格投资者汇入本金、汇出本金或者收益2个工作日内,向国家外汇局报告合格投资者的资金汇入、汇出及结售汇情况;

(5) within eight working days after the end of each month, to report to SAFE the details of payments made into and out of, as well as the asset allocation of, the QFII's foreign exchange accounts and special renminbi accounts, and to report to the CSRC the details of the investments and transactions of the securities accounts;

(五)  每月结束后8个工作日内,向国家外汇局报告合格投资者的外汇账户和人民币特殊账户的收支和资产配置情况,向中国証监会报告証券账户的投资和交易情况;

(6) within three months after the conclusion of each fiscal year, to prepare an annual financial report on the particulars of the QFII's securities investment activities in China during the previous year and to submit the same to the CSRC and SAFE;

(六)  每个会计年度结束后3个月内,编制关于合格投资者上一年度境内証券投资情况的年度财务报告,并报送中国証监会和国家外汇局;

(7) to keep for a period of not less than 20 years relevant information such as records of remittances into and out of China, the conversion of funds, the receipt and payment of foreign exchange, and the receipt and payment of funds by the QFII;

(七)  保存合格投资者的资金汇入、汇出、兑换、收汇、付汇和资金往来记录等相关资料,其保存的时间应当不少于20年;

(8) to submit balance of payments statistics in accordance with state foreign exchange control provisions; and

(八)  根据国家外汇管理规定进行国际收支统计申报;

(9) other duties specified by the CSRC and SAFE in accordance with the principle of prudential regulation.

(九)  中国証监会、国家外汇局根据审慎监管原则规定的其他职责。

Article 14: A custodian must keep its own assets and those it manages as custodian strictly apart, and keep separate accounts for those assets it manages as custodian.

第十四条 托管人必须将其自有资产和受托管理的资产严格分开,对受托管理的资产实行分账托管。

Article 15: Each QFII may appoint only one custodian but the custodian may be changed.

第十五条 每个合格投资者只能委托1个托管人,并可以更换托管人。

Article 16: A QFII may apply to open a securities account with the securities depository and clearing institution. Such securities account may be a real name account or a nominal holder account.

第十六条 合格投资者可以在証券登记结算机构申请开立証券账户。该証券账户可以是实名账户,也可以是名义持有人账户。

A nominal holder shall report the name, place of registration, asset allocation mix and details of the securities investments of the actual investor or fund that it represents to the CSRC and stock exchange within eight working days after the end of each quarter.

名义持有人应当将其代理的实际投资者或基金的名称、注册地、资产配置、証券投资情况于每个季度结束后的8个工作日内,报告中国証监会和証券交易所。

Article 17: A QFII shall appoint an institution that has obtained clearing participant qualifications from the securities depository and clearing institution to carry out fund clearance. Within five working days of opening a renminbi clearing account, the aforementioned institution shall report on the opening of the account to SAFE for the record.

第十七条 合格投资者应当委托获得証券登记结算机构结算参与人资格的机构进行资金结算。该机构应在开立人民币结算资金账户5个工作日内将开户情况向国家外汇局备案。

PART FOUR: INVESTMENT OPERATIONS

第四章 投资运作

Article 18: Within the approved investment quota, a QFII may invest in renminbi-denominated financial instruments approved by the CSRC.

第十八条 合格投资者在经批准的投资额度内,可以投资于中国証监会批准的人民币金融工具。

Article 19: A QFII may appoint a securities company or other investment management institution established in China to carry out securities investment management in China.

第十九条 合格投资者可以委托在境内设立的証券公司等投资管理机构,进行境内証券投资管理。

Article 20: Share investments in China by a QFII shall comply with the limitations on shareholding percentages specified by the CSRC and other relevant state provisions.

第二十条 合格投资者的境内股票投资,应当遵守中国証监会规定的持股比例限制和国家其他有关规定。

Article 21: When performing its information disclosure obligation, an offshore investor shall calculate together the domestically listed shares and offshore listed shares of the same listed company that it holds and comply with relevant laws and regulations on information disclosure.

第二十一条 境外投资者履行信息披露义务时,应当合并计算其持有的同一上市公司的境内上市股和境外上市股,并遵守信息披露的有关的法律法规。

Article 22: Securities companies and other such institutions shall keep information such as the instruction records and transaction records of QFIIs for a period of not less than 20 years.

第二十二条 証券公司等机构保存合格投资者的委托记录、交易记录等资料的时间应当不少于20年。

Article 23: Securities investment activities carried out in China by QFIIs shall comply with relevant provisions of the stock exchange and securities depository and clearing institution.

第二十三条 合格投资者的境内証券投资活动,应当遵守証券交易所、証券登记结算机构的有关规定。

PART FIVE: FUND MANAGEMENT

第五章 资金管理

Article 24: Upon approval by SAFE, a QFII shall open foreign exchange accounts and special renminbi accounts with the custodian.

第二十四条 合格投资者经国家外汇局批准,应当在托管人处开立外汇账户和人民币特殊账户。

Article 25: The scope of receipts and expenditures of a QFII's foreign exchange accounts and special renminbi accounts shall comply with relevant provisions of SAFE.

第二十五条 合格投资者外汇账户和人民币特殊账户的收支范围应当符合国家外汇局的有关规定。

Article 26: A QFII shall carry out inward remittance of the principal by the time specified by SAFE. The remitted principal shall be in a convertible currency approved by SAFE and the amount thereof may not exceed the approved limit.

第二十六条 合格投资者应当在国家外汇局规定的时间内汇入本金,汇入的本金应当是国家外汇局批准的可兑换货币,金额以批准额度为限。

If a QFII fails to remit in full the principal by the time specified by SAFE, it shall give a written explanation to the CSRC and SAFE and the amount actually remitted by it shall be its approved limit. The difference between its approved limit and the actual amount remitted by it may not be remitted inward without the approval of SAFE.

合格投资者未在国家外汇局规定的时间内汇满本金的,应当向中国証监会和国家外汇局作出书面解释,并以实际汇入金额为批准额度;已批准额度和已实际汇入金额的差额,在未经国家外汇局批准之前不得汇入。

Article 27: A QFII may apply for outward remittance of funds from the date of expiration of the period of time specified by SAFE, unless otherwise specified by SAFE.

第二十七条 合格投资者可以在国家外汇局规定的期限届满之日起向国家外汇局申请汇出资金,国家外汇局另有规定的除外。

Article 28: SAFE may, based on China's economic and financial circumstances, supply and demand in the foreign exchange market and the balance of payments, make revisions to the times for the inward and outward remittance of principal by QFIIs, the amounts thereof and the time limit for making outward remittances of funds in line with the arrangements of the People's Bank of China.

第二十八条 国家外汇局可以根据我国经济金融形势、外汇市场供求关系和国际收支状况,按照中国人民银行的安排,对合格投资者本金的汇入汇出时间、金额以及汇出资金的期限予以调整。

PART SIX: REGULATION

第六章 监督管理

Article 29: The CSRC and SAFE may, in accordance with the law, require a QFII, custodian, securities company or other such institution to provide relevant information on the QFII, and make the necessary inquiries and carry out the necessary inspections.

第二十九条 中国証监会、国家外汇局依法可以要求合格投资者、托管人、証券公司等机构提供合格投资者的有关资料,并进行必要的询问、检查。

Article 30: A QFII shall report to the CSRC and SAFE for the record within five working days after the occurrence of:

第三十条 合格投资者有下列情形之一的,应当在其发生后5个工作日内报中国証监会、国家外汇局备案:

(1) a change of custodian;

(一)  变更托管人;

(2) a change of legal representative;

(二)  变更法定代表人;

(3) a change of controlling shareholder;

(三)  其控股股东变更;

(4) an adjustment in its registered capital;

(四)  调整注册资本;

(5) major litigation or other major matters;

(五)  涉及重大诉讼及其他重大事件;

(6) a major punishment imposed outside China; or

(六)  在境外受到重大处罚;

(7) other circumstances specified by the CSRC or SAFE.

(七)  中国証监会和国家外汇局规定的其他情形。

Article 31: A QFII shall apply for a new securities investment business permit if:

第三十一条 合格投资者有下列情形之一的,应当重新申领証券投资业务许可証:

(1) it changes its name;

(一)  变更机构名称;

(2) it is merged by absorption with another institution; or

(二)  被其他机构吸收合并;

(3) in other circumstances specified by the CSRC or SAFE.

(三)  中国証监会和国家外汇局规定的其他情形。

While applying for a new securities investment business permit, the QFII may continue to engage in securities trading, unless, in line with prudential regulatory principles, the CSRC deems it necessary to suspend its trading.

重新申领証券投资业务许可証期间,合格投资者可以继续进行証券交易。但中国証监会根据审慎监管原则认为需要暂停的除外。

Article 32: A QFII shall return its securities investment business permit and foreign exchange registration certificate to, respectively, the CSRC and SAFE if:

第三十二条 合格投资者有下列情形之一的,应当将証券投资业务许可証和外汇登记証分别交还中国証监会和国家外汇局:

(1) the applicant fails to apply to SAFE for an investment quota within one year after obtaining its securities investment business permit;

(一)  申请人取得証券投资业务许可証后1年内未向国家外汇局提出投资额度申请的;

(2) the institution is dissolved, commences bankruptcy procedures or is taken over by a receiver;

(二)  机构解散、进入破产程序或者由接管人接管的;

(3) the QFII applies for a new permit; or

(三)  合格投资者重新申领许可証的;

(4) the QFII has committed a major violation of the law or is characterized by another circumstance determined by the CSRC and SAFE.

(四)  合格投资者有重大违法行为及中国証监会和国家外汇局认定的其他情形。

Article 33: If a major violation of laws or regulations is perpetrated through a securities account managed by a QFII, the CSRC may, in accordance with the law, take such measures as limiting the transactions that can be carried out through such account, etc. and SAFE may take such measures as placing a limit on funds that may be remitted inward thereto or outward therefrom, etc.

第三十三条 合格投资者所管理的証券账户发生重大违法、违规行为的,中国証监会可以依法采取限制相关証券账户的交易行为等措施,国家外汇局可以依法采取限制其资金汇出入等措施。

Article 34: If a custodian commits a serious violation of laws or regulations, the CSRC and SAFE will, in accordance with the law, jointly render a decision to revoke its custodian qualifications.

第三十四条 托管人违法、违规行为严重的,中国証监会、国家外汇局将依法联合做出取消其托管人资格的决定。

Article 35: If a QFII, custodian, securities company, etc. violates these Measures, the CSRC and/or SAFE will impose appropriate administrative penalties in accordance with the law.

第三十五条 合格投资者、托管人、証券公司等违反本办法的,由中国証监会、国家外汇局依法进行相应的行政处罚。

PART SEVEN: SUPPLEMENTARY PROVISIONS

第七章 附则

Article 36: These Measures shall apply to the engagement in securities investment carried out in the mainland by institutional investors established in the Hong Kong Special Administrative Region, the Macao Special Administrative Region and Taiwan.

第三十六条 香港特别行政区、澳门特别行政区、台湾地区设立的机构投资者到内地从事証券投资的,适用本办法的规定。

Article 37: These Measures shall be effective as of September 1 2006. The Tentative Measures for the Administration of Securities Investments in China by Qualified Foreign Institutional Investors jointly promulgated by the CSRC and People's Bank of China on November 5 2002 shall be repealed simultaneously.

clp reference:3700/06.08.24(1)prc reference:证监会、中国人民银行、外汇局令 第36号promulgated:2006-08-24effective:2006-09-01

第三十七条 本办法自2006年9月1日起施行,2002年11月5日中国証监会、中国人民银行联合发布的《合格境外机构投资者境内証券投资管理暂行办法》同时废止。

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