China Securities Regulatory Commission, Measures for Administration of the Client Asset Management Business of Securities Companies

Promulgated: October 18 2012
Effective: as of date of promulgation

Main contents: A securities company may lawfully engage in the following client asset management business:

(1) targeted asset management business for single clients;

(2) pooled asset management business for multiple clients; and

(3) dedicated asset management business for specific purposes for clients (Article 11).

Assets of a restricted pooled asset management plan shall mainly be used to invest in sovereign bonds, bond-type securities investment funds, enterprise bonds listed on a stock exchange and other highly liquid fixed return financial products with a high credit rating; assets invested in equity-type securities, such as stocks, and stock-type securities investment funds may not exceed 20% of the net value of the plan assets.

The scope of investment of an unrestricted pooled asset management plan shall be specified in the pooled asset management contract, and shall not be subject to the preceding paragraph (Article 14).

Within five working days after promoting and establishing a pooled asset management plan, a securities company shall report the details thereof to the Securities Association of China for the record, with copies sent to the CSRC agencies of the place where the securities company is domiciled and where the asset management branch is located (Article 18).

When a securities company handles targeted asset management business, the net value of the assets it accepts from a single client may not be less than Rmb1 million (Article 23).

When handling pooled asset management business, a securities company may only accept assets in monetary form.

When a securities company establishes a restricted pooled asset management plan, the amount of funds that it accepts from any single client may not be less than Rmb50,000; when it establishes an unrestricted pooled asset management plan, the amount of funds that it accepts from any single client may not be less than Rmb100,000 (Article 24).

A client that participates in a pooled asset management plan may not transfer its shares, unless otherwise provided by laws, administrative regulations or the CSRC (Article 26).

Repealed legislation: Measures for Administration of the Client Asset Management Business of Securities Companies, Dec 18 2003