State Administration of Foreign Exchange, Circular on Issues Relevant to Foreign Exchange Control in Connection with Overseas Securities Investments of Fund Management Companies and Securities Companies

Issued: September 29 2009

Effective: as of date of issuance

Main contents: Where a securities business organisation that has obtained an investment limit is unable to use the limit effectively within two years, the State Administration of Foreign Exchange shall have the authority to reduce its limit. Securities business organisations may not transfer or sell their investment limits to other organisations in any manner (Article 4). Securities institutions may raise foreign exchange funds from domestic investors, and may raise renminbi funds from domestic investors to purchase foreign exchange for overseas securities investment. Domestic investors may not use foreign currency cash to invest in related products issued by the securities business organisation (Article 5).