China Securities Regulatory Commission, Provisions for the Establishment of Organizations in Hong Kong by Securities Investment Fund Management Companies

Issued: April 8 2008
Effective: As of date of issuance

Applicability: In the case of equity participation in an asset management organization in Hong Kong, or establishment of an organization or equity participation in an asset management organization in other countries or regions that have signed a memorandum for cooperation in regulation with the China Securities Regulatory Commission (CSRC), by a fund management company, matters shall, mutatis mutandis, be handled in accordance with these Measures (Article 12).

Main Contents: Fund management companies may, according to their business development requirements, establish an organization in Hong Kong (Hong Kong Organization) to engage in business related to asset management. The Hong Kong organization may be in the form of a branch, office, subsidiary or any other form permitted by the CSRC (Article 1). Where a fund management company applies to establish an organization in Hong Kong, it shall fulfil the basic criteria for fund management companies to establish branches as specified in the Measures for the Administration of Securities Investment Fund Management Companies, comply with the company's internal decision making procedure, have clear commercial objectives and plans, have clear arrangement for the management of the Hong Kong organization, and be able to maintain good financial status after making capital contribution to the Hong Kong organization (Article 3).