China Securities Regulatory Commission, Trial Measures for the Administration of Overseas Securities Investment by Qualified Domestic Institutional Investors

中国证券监督管理委员会合格境内机构投资者境外证券投资管理试行办法

September 02, 2007 | BY

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Overseas securities investment available for fund management companies and securities companies.

Clp Reference: 3700/07.06.18 Promulgated: 2007-06-18 Effective: 2007-07-05

Promulgated: June 18 2007
Effective: July 5 2007

Applicability: For the purposes of these Measures, the term "qualified domestic institutional investor" (QDII) means a domestic fund management company, securities company or other such securities business company that satisfies the conditions specified herein and has been approved by the China Securities Regulatory Commission (the CSRC) to raise funds in China and use part or all of such funds in portfolio format to engage in overseas securities investment management (Article 2).

Main Contents: To apply for QDII qualifications, the following conditions shall be satisfied:

(1) the applicant's finances are stable, its creditworthiness is good, and the scale of the assets under its management, number of years it has been in operation, etc., comply with the provisions of the CSRC;

(2) it has personnel whom satisfy provisions and have overseas investment management related experience;

(3) it has a sound governance structure and internal control systems and its operations are compliant;

(4) during the most recent three years it has not been subjected to a major penalty by the regulatory authorities, and there are no material events in respect of which the judicial or regulatory authorities have opened a case and are presently investigating; and

(5) other conditions as specified by the CSRC based on the principle of prudent regulation.

The Measures also set forth provisions on overseas investment consultants, asset custody, raising of funds, investment operations, information disclosure, fund management and government oversight.

Related Legislation: PRC Securities Investment Fund Law, Oct 28 2003, CLP 2003 No.10 p.43; and PRC Securities Law (Amended), Oct 27 2005, CLP 2006 No.1 p.31

Full Analysis & Translation: See page 34

clp reference:3700/07.06.18prc reference:证监会令第 46 号promulgated:2007-06-18effective:2007-07-05

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