China Securities Regulatory Commission, Provisions on Issues Relevant to the Implementation of the «Measures for the Administration of Securities Investment Fund Management Companies»
中国证券监督管理委员会关于实施〈证券投资基金管理公司管理办法〉有关问题的规定
October 11, 2012 | BY
CLP Temp &The foreign shareholding in the domestic shareholder should be included whencalculating the total foreign shareholding of a joint venture fund managementcompany.
Issued: September 20 2012
Effective: November 1 2012
Main contents: When calculating the percentage of foreign-owned equity in a Sino-foreign equity joint venture fund management company, if there is some foreign investment in the domestic shareholder then, in principle, the foreign shareholding percentage in the domestic shareholder of the joint venture shall be multiplied by its equity percentage in the joint venture and then added to the shareholding percentage (directly held) of the foreign shareholder of the joint venture. In the following two circumstances, matters shall be handled in accordance with the following criteria:
(1) if, after the establishment of the joint venture, the domestic shareholder (including its de facto controller) is listed or makes an additional offering of shares abroad, the additional foreign-owned equity in the domestic shareholder shall not be calculated with the equity held by the foreign shareholder of the joint venture, unless the offshore listing of the domestic shareholder or its de facto controller results in control of the domestic shareholder passing to foreign investors;
(2) if the domestic shareholder (including its de facto controller) is a listed A-share company and a qualified foreign institutional investor (QFII) holds shares therein, the foreign-owned equity of the QFII in the domestic investor shall not be calculated with the equity held by the foreign shareholder of the joint venture, unless the shareholding of the QFII in the domestic shareholder or its de facto controller results in control of the domestic shareholder passing to foreign investors (Article 3).
Related legislation: Measures for the Administration of Securities Investment Fund Management Companies (Amended), Sep 20 2012; and Measures for the Pilot Specific Client Asset Management Business of Fund Management Companies (Amended), Sep 26 2012
Repealed legislation: Circular on Several Issues Concerning the Implementation of the «Measures for the Administration of Securities Investment Fund Management Companies» and; Circular on Issues Relevant to Regulation of the Establishment of Fund Management Companies and Disposal of the Equity Interests, May 6 2006
Issued: September 20 2012
Effective: November 1 2012
Main contents: When calculating the percentage of foreign-owned equity in a Sino-foreign equity joint venture fund management company, if there is some foreign investment in the domestic shareholder then, in principle, the foreign shareholding percentage in the domestic shareholder of the joint venture shall be multiplied by its equity percentage in the joint venture and then added to the shareholding percentage (directly held) of the foreign shareholder of the joint venture. In the following two circumstances, matters shall be handled in accordance with the following criteria:
(1) if, after the establishment of the joint venture, the domestic shareholder (including its de facto controller) is listed or makes an additional offering of shares abroad, the additional foreign-owned equity in the domestic shareholder shall not be calculated with the equity held by the foreign shareholder of the joint venture, unless the offshore listing of the domestic shareholder or its de facto controller results in control of the domestic shareholder passing to foreign investors;
(2) if the domestic shareholder (including its de facto controller) is a listed A-share company and a qualified foreign institutional investor (QFII) holds shares therein, the foreign-owned equity of the QFII in the domestic investor shall not be calculated with the equity held by the foreign shareholder of the joint venture, unless the shareholding of the QFII in the domestic shareholder or its de facto controller results in control of the domestic shareholder passing to foreign investors (Article 3).
Related legislation: Measures for the Administration of Securities Investment Fund Management Companies (Amended), Sep 20 2012; and Measures for the Pilot Specific Client Asset Management Business of Fund Management Companies (Amended), Sep 26 2012
Repealed legislation: Circular on Several Issues Concerning the Implementation of the «Measures for the Administration of Securities Investment Fund Management Companies» and; Circular on Issues Relevant to Regulation of the Establishment of Fund Management Companies and Disposal of the Equity Interests, May 6 2006
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