People's Bank of China, China Banking Regulatory Commission, China Securities Regulatory Commission, China Insurance Regulatory Commission and State Administration of Foreign Exchange, Guiding Opinions on Regulating the Asset Management Business of Financial Institutions (Draft for Comments)

An asset management product shall set a ceiling on its liability percentage (gross assets/net assets), and the same ceiling shall apply to all identical products. The gross assets of each open-ended publicly offered product may not exceed 140% of the net assets of the product in question, and the gross assets of each closed-end publicly offered product and each privately offered product may not exceed 200% of the net assets of the product in question. When calculating the gross assets of any one product, the gross assets of the asset management products invested in shall also be counted in such calculation in accordance with the penetration principle.