Circular on Issues Relevant to Foreign Exchange Control with Respect to Overseas Securities Investments of Fund Management Companies
关于基金管理公司境外证券投资外汇管理有关问题的通知
This Circular addresses some of the issues in relation to foreign financial investments and asset management. The scopes of foreign exchange business and income are stipulated. Matters regarding the source of investment funds and their management are clarified.
(Issued by the State Administration of Foreign Exchange on, and effective as of, August 30 2006.)
(国家外汇管理局于二零零六年八月三十日发布，自发布之日起施行。)
Hui Fa [2006] No.46
汇发 [2006] 46号
Branches and offices of the State Administration of Foreign Exchange of each province, autonomous region and municipality directly under the central government and the Shenzhen, Dalian, Qingdao, Xiamen and Ningbo municipal branches of the State Administration of Foreign Exchange:
国家外汇管理局各省、自治区、直辖市分局、外汇管理部，深圳、大连、青岛、厦门、宁波市分局：
With a view to satisfying the reasonable demands of resident individuals and organizations in China with respect to foreign financial investments and asset management, and regulating foreign exchange control in respect of the overseas securities investments of fund management companies, we hereby notify you, in line with the spirit of Announcement No.5 of 2006 of the People's Bank of China, on relevant issues as follows:
为满足境内居民个人和机构对外金融投资和资产管理的合理需求，规范基金管理公司境外証券投资的外汇管理，根据中国人民银行2006年第5号公告精神，现就有关问题通知如下：
1. A fund management company that wishes to provide overseas securities investment services shall first require the check and approval of, and obtain the qualifications to engage in foreign exchange business and an overseas securities investment limit from, the (sub-) branch or office of the State Administration of Foreign Exchange (the Foreign Exchange Bureau) of the place where it is located. Alternatively, a fund management company may apply for the qualifications to engage in foreign exchange business at the same time it applies for its overseas securities investment limit.
一、 基金管理公司办理境外証券投资业务，应事先经所在地国家外汇管理局分支局、外汇管理部(以下简称“外汇局”)核准取得经营外汇业务的资格，并取得境外証券投资的额度。基金管理公司也可以在申请境外証券投资额度的同时申请经营外汇业务资格。
2. A fund management company may apply to engage in some or all of the following foreign exchange business:
二、 基金管理公司可申请从事下列部分或全部外汇业务：
(1) management of foreign exchange assets;
(一) 外汇资产管理；
(2) investment of capital denominated in foreign exchange;
(二) 外汇资本金投资；
(3) interbank lending of foreign exchange;
(三) 外汇同业拆借；
(4) credit investigation and consulting services; and
(四) 资信调查、咨询服务；
(5) other business approved by the State Administration of Foreign Exchange.
(五) 国家外汇管理局批准的其他业务。
A fund management company that wishes to engage in the management of foreign exchange assets or the investment of capital denominated in foreign exchange shall comply with the relevant provisions of the China Securities Regulatory Commission (CSRC).
基金管理公司从事外汇资产管理业务和外汇资本金投资业务，应符合中国証券监督管理委员会(以下简称“中国証监会”)的有关规定。
3. When applying for the qualifications to engage in foreign exchange business, a fund management company shall make its application to the Foreign Exchange Bureau of the place where it is located with the following documents:
三、 基金管理公司申请经营外汇业务资格，应持以下文件向所在地外汇局申请：
(1) a written application, which shall include the company's basic particulars and internal organizational structure, the r¨¦sum¨¦s and related qualification certificates of the company's senior management personnel responsible for foreign exchange business, an analysis of the feasibility of engaging in foreign exchange business and details on the conditions for engaging therein, and others;
(一) 书面申请，内容包括：公司基本情况、内部组织结构、公司外汇业务高级管理人员的简历及相关资格証明、经营外汇业务的可行性分析以及经营条件的情况说明等；
(2) a photocopy of the original of the Fund Management Company Legal Person Permit issued by the CSRC;
(二) 中国証监会颁发的《基金管理公司法人许可証》正本复印件；
(3) the company's internal control and management systems and risk prevention measures for the foreign exchange business;
(三) 公司外汇业务内控管理制度、风险防范措施；
(4) the company's financial statements for the preceding year audited by an accounting firm; if the company has been established for less than one year, it must submit a capital verification report issued by an accounting firm; and
(四) 经会计师事务所审计的上一年度公司财务报表。成立时间不足一年的公司须提交由会计师事务所出具的验资报告；
(5) other materials specified by the Foreign Exchange Bureau.
(五) 外汇局规定的其他材料。
The Foreign Exchange Bureau of the place where it is located shall, within 20 working days from the date of receipt of the complete set of application materials, issue its comments upon preliminary examination in accordance with the Operational Rules for Examinations for Granting Access to the Foreign Exchange Business Market to Fund Management Companies (see Appendix 1) and forward the application materials to the State Administration of Foreign Exchange in accordance with procedure. The State Administration of Foreign Exchange shall render its decision on whether or not to grant approval within 20 working days from the date of receipt of the complete set of application materials. If it decides to grant approval, it shall issue a Foreign Exchange Business Permit for Securities Business.
所在地外汇局应自收到完整的申请材料之日起20个工作日内，根据《基金管理公司外汇业务市场准入审核操作规程》(见附件1)提出初审意见，按程序报达国家外汇管理局。国家外汇管理局应在收到完整申请材料之日起20个工作日内作出批准或不批准的决定。决定批准的，颁发《証券业务外汇经营许可証》。
4. When applying for an overseas securities investment limit, a fund management company shall make its application to the Foreign Exchange Bureau of the place where it is located with the following documents:
四、 基金管理公司申请境外証券投资额度，应持以下文件向所在地外汇局申请：
(1) a written application, which shall include the applicant's basic particulars, the investment limit applied for, the type of fund to be established (open-ended or closed-end), the number of fund shares to be issued, the source of funds and investment plan, together with a model written agreement it intends to sign with investors;
(一) 申请书，内容包括：申请人的基本情况、拟申请投资额度、拟设立基金种类(开放式、封闭式)、拟发行基金份额、资金来源以及投资计划，并附拟与投资者签订的书面协议范本；
(2) its Foreign Exchange Business Permit for Securities Business or the application materials specified in Article 3 hereof;
(二) 《証券业务外汇经营许可証》或本通知第三条规定的申请材料；
(3) the document or relevant supporting materials indicating that the CSRC consents to its providing overseas securities investment services;
(三) 中国証监会同意其进行境外証券投资业务的文件或相关証明材料；
(4) the company's financial statements for the preceding year audited by an accounting firm; and
(四) 经会计师事务所审计的上一年度公司财务报表；
(5) other materials specified by the Foreign Exchange Bureau.
(五) 外汇局规定的其他材料。
The Foreign Exchange Bureau of the place where it is located shall, within 20 working days from the date of receipt of the complete set of application materials, issue its comments upon preliminary examination in accordance with the Operational Rules for Foreign Exchange Business in Connection with the Investment in Overseas Securities by Fund Management Companies (see Appendix 2) and forward the application materials to the State Administration of Foreign Exchange in accordance with the procedure. The State Administration of Foreign Exchange shall render its decision on whether or not to grant approval within 20 working days from the date of receipt of the complete set of application materials. When it grants approval, it will specify the investment limit and number of fund shares.
所在地外汇局应自收到完整的申请材料之日起20个工作日内，根据《基金管理公司境外証券投资外汇业务操作规程》(见附件2)提出初审意见，按程序报达国家外汇管理局。国家外汇管理局应在收到完整申请材料之日起20个工作日内作出批准或不批准的决定，批准时明确投资额度和基金份额。
5. The fund management company shall open, on the strength of the relevant approval document issued by the Foreign Exchange Bureau, with a designated foreign exchange bank an account for its own foreign exchange funds, which shall be used for the deposit of the company's foreign exchange principal and foreign exchange receipts. The fund management company shall report the opening of its account to the Foreign Exchange Bureau of the place where it is located for the record within five working days after opening such account.
五、 基金管理公司应持外汇局相关批准文件在外汇指定银行开立自有外汇资金账户，用于存放公司外汇资本金和外汇收入。基金管理公司应在账户开立后5个工作日内向所在地外汇局报备。
The scope of the receipts in a fund management company's account for its own foreign exchange funds shall be the foreign exchange principal remitted into the account, income derived from engaging in foreign exchange business and other foreign exchange receipts approved by the Foreign Exchange Bureau. The scope of expenditures shall be foreign exchange settlements, expenditures on the current account, and expenditures on the capital account approved by the Foreign Exchange Bureau.
基金管理公司自有外汇资金账户的收入范围是：汇入的外汇资本金，外汇业务经营所得以及经外汇局批准的其他外汇收入；支出范围是：结汇，经常项目支出以及经外汇局批准的资本项目支出。
6. The fund management company shall, on the strength of the relevant approval document for its investment limit issued by the Foreign Exchange Bureau, open with the designated foreign exchange bank a foreign exchange account for overseas securities investments, which shall be used for the deposit of the proceeds from the sale of fund shares as well as foreign exchange funds from/for subscriptions, redemptions, dividends and others. The fund management company shall report the opening of its account to the Foreign Exchange Bureau of the place where it is located for the record within five working days after opening such account.
六、 基金管理公司应持外汇局关于投资额度的批准文件在外汇指定银行开立境外証券投资外汇账户，用于存放募集资金以及申购、赎回、分红等外汇资金。基金管理公司应在账户开立后5个工作日内向所在地外汇局报备。
The scope of the receipts in a fund management company's foreign exchange account for overseas securities investments shall be the funds collected from resident individuals or organizations in China, funds transferred in from the domestic custody account, funds remitted in by resident individuals or organizations in China when subscribing for the fund and other foreign exchange receipts approved by the Foreign Exchange Bureau. The scope of expenditures shall be funds transferred out to the domestic custody account, funds for the payment of dividends and redemptions to investors and other foreign exchange expenditures approved by the Foreign Exchange Bureau.
基金管理公司境外証券投资外汇账户的收入范围是：募集境内居民个人或机构的资金，从境内托管账户划入的资金，境内居民个人或机构申购基金汇入的资金以及经外汇局批准的其他外汇收入；支出范围是：划往境内托管账户的资金，支付投资者分红款和赎回款的资金，以及经外汇局批准的其他外汇支出。
7. Once the fund management company has received its investment limit approved by the Foreign Exchange Bureau, it shall execute a custodian agreement with the domestic custodian and open a domestic custody account for the custody of all the assets to be used for overseas securities investments. The domestic custodian shall satisfy the conditions specified by the China Banking Regulatory Commission.
七、 基金管理公司取得外汇局批准的投资额度后，应与境内托管人签订托管协议，开立境内托管账户，托管其用于境外証券投资的全部资产。境内托管人应符合中国银行业监督管理委员会规定的条件。
The fund management company shall submit the account opening details and the custodian agreement to the Foreign Exchange Bureau of the place where it is located for the record within five working days after opening the account.
基金管理公司应在开户后5个工作日内，将账户开立情况及托管协议向所在地外汇局报备。
The scope of the receipts of the domestic custody account shall be funds transferred in from the fund management company's foreign exchange account for overseas securities investments, funds transferred in from the overseas settlement account and other receipts approved by the Foreign Exchange Bureau. The scope of expenditures shall be funds transferred out to the overseas settlement account, funds transferred out to the fund management company's foreign exchange account for overseas securities investments, funds for the payment of dividends and redemptions to investors, funds for the payment of custody fees, management fees and various handling charges and other expenditures approved by the Foreign Exchange Bureau.
境内托管账户的收入范围是：从基金管理公司境外証券投资外汇账户划入的资金，从境外结算账户划入的资金以及经外汇局批准的其他收入；支出范围是：划往境外结算账户的资金，划往基金管理公司境外証券投资外汇账户的资金，支付投资者分红款和赎回款的资金，支付托管费、管理费、各类手续费以及外汇局批准的其他支出。
8. The domestic custodian shall open an overseas settlement account with the overseas custody agent for the fund management company, which shall be used for the settlement of funds with such organizations as the overseas securities depository and clearing institution. The domestic custodian shall report the account opening details to the State Administration of Foreign Exchange for the record within five working days after opening the account.
八、 境内托管人应当在境外托管代理人处为基金管理公司开立境外结算账户，用于与境外証券登记结算等机构之间的资金结算业务。境内托管人应在开户后5个工作日内，将账户开立情况向国家外汇管理局报备。
The scope of receipts of the overseas settlement account shall be funds transferred in from the domestic custody account, proceeds derived from the sale of various types of overseas financial assets, dividends, bonuses and interest income and other receipts approved by the Foreign Exchange Bureau. The scope of expenditures shall be funds transferred out to the domestic custody account, funds used to purchase various types of overseas financial assets, funds for the payment of relevant charges and other expenditures approved by the Foreign Exchange Bureau.
境外结算账户的收入范围是：从境内托管账户划入的资金，出售各类境外金融资产所得资金，分红派息、利息收入以及经外汇局批准的其他收入；支出范围是：划往境内托管账户的资金，购买各类境外金融资产的资金，支付相关费用以及经外汇局批准的其他支出。
9. The fund management company may make the outward or inward remittances of the difference between open-ended fund subscriptions and redemptions through the domestic custody account. The fund management company's aggregate net outward remittances may not exceed the investment size as calculated based on the investment shares approved by the Foreign Exchange Bureau.
九、 基金管理公司可通过境内托管账户汇出、汇入开放式基金申购、赎回的差额。基金管理公司的累计淨汇出额不得超过按外汇局批准的投资份额计算出的投资规模。
10. The fund subscriptions by a resident individual or organization in China shall be handled through a bank based on the written agreement executed by him/her/it with the fund management company. When an individual subscribes for a fund, he/she may not directly use foreign currency cash to do so, rather, he/she may only use his/her foreign exchange deposit placed with a bank in China. An organization in China may not use debt type foreign exchange funds to subscribe for a fund.
十、 境内居民个人和机构认购、申购基金，应凭其与基金管理公司签订的书面协议通过银行办理。个人认购或申购基金的，不得直接使用外币现钞，只能使用本人存放于境内银行的外汇存款。境内机构不得以债务性外汇资金认购或申购基金。
11. The relevant transfer procedures for the foreign exchange funds derived from fund redemptions and fund dividends by a resident individual or organization in China shall be carried out by a bank on the strength of the payment instructions from the fund management company. The foreign exchange funds derived by an individual from fund redemptions and fund dividends shall be transferred by the bank into his/her foreign exchange deposit account. An individual may not directly withdraw cash from, or effect foreign exchange settlement through, the foreign exchange account for overseas securities investments. The foreign exchange funds derived by an organization from fund redemptions and fund dividends shall be remitted back to its original foreign exchange account by the bank.
十一、 境内居民个人和机构从基金赎回和基金分红所得的外汇资金，由银行凭基金管理公司的付款指令办理相关划转手续。个人因基金赎回和基金分红所得的外汇资金，由银行划至其外汇存款账户。个人不得从境外証券投资外汇账户直接提取现钞或结汇。境内机构因基金赎回或基金分红所得的外汇资金，由银行划回其原外汇账户。
12. The domestic custodian shall submit data to the State Administration of Foreign Exchange in the specified format (see Schedules 1, 2 and 3) within seven working days after the end of each month, and make a balance of payments report in accordance with relevant provisions.
十二、 境内托管人应按照规定格式(见附表1、2、3)在每月结束后7个工作日内向国家外汇管理局报送数据，并按相关规定进行国际收支申报。
13. The Foreign Exchange Bureau of the place where fund management companies are located shall collate the information on the opening and closing of accounts for fund management companies' own foreign exchange funds, foreign exchange accounts for overseas securities investments and domestic custody accounts within its jurisdiction and forward the same to the State Administration of Foreign Exchange on a monthly basis.
十三、 基金管理公司所在地外汇局应按月汇总辖内基金管理公司自有外汇资金账户、境外証券投资外汇账户、境内托管账户的开立与撤销情况，并报送国家外汇管理局。
14. If a fund management company or bank violates this Circular, the Foreign Exchange Bureau shall impose penalties in accordance with the PRC Foreign Exchange Control Regulations and relevant foreign exchange control regulations. If a domestic custodian commits a serious violation of provisions, the Foreign Exchange Bureau may instruct the fund management company to replace its domestic custodian. If a fund management company commits a serious violation of provisions, the Foreign Exchange Bureau may cancel its investment limit or revoke its Foreign Exchange Business Permit for Securities Business.
十四、 基金管理公司和银行违反本通知规定的，外汇局按照《中华人民共和国外汇管理条例》和有关外汇管理法规予以处罚。对违规情节严重的境内托管人，外汇局可责成基金管理公司更换境内托管人。对违规情节严重的基金管理公司，外汇局可取消其投资额度或吊销其《証券业务外汇经营许可証》。
15. This Circular shall be effective as of the date of issuance. Once you have received this document, you should promptly transmit it to the core sub-branches in your jurisdiction and transmit this document and the Schedules to the fund management companies and designated foreign exchange banks in your jurisdiction. If you encounter any problems in the implementation hereof, promptly report the same to the State Administration of Foreign Exchange.
十五、 本通知自发布之日起执行。各分局、外汇管理部接文后，应及时将本通知转发至辖内中心支局，将本文及附表转发至辖内基金管理公司和外汇指定银行。执行中如遇问题，应及时向国家外汇管理局反映。
Appendices:
附件：
1. Operational Rules for Examinations for Granting Access to the Foreign Exchange Business Market to Fund Management Companies (omitted)
1、 基金管理公司外汇业务市场准入审核操作规程(略)
2. Operational Rules for Foreign Exchange Business in Connection with the Investment in Overseas Securities by Fund Management Companies (omitted)
2、 基金管理公司境外証券投资外汇业务操作规程(略)
Schedules:
附表：
1. Monthly Statement for the Overseas Securities Investments of Qualified Domestic Institutional Investors (1)
1、 合格境内机构投资者境外証券投资月报表(一)
2. Monthly Statement for the Overseas Securities Investments of Qualified Domestic Institutional Investors (2)
2、 合格境内机构投资者境外証券投资月报表(二)
3. Itemized Table of Inward and Outward Fund Remittances of Qualified Domestic Institutional Investors
clp reference:3800/06.08.30prc reference:汇发 [2006] 46 号promulgated:2006-08-30effective:2006-08-303、 合格境内机构投资者资金汇出入明细表
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