Article 10 of the Measures for the Administration of Private Placement Management of Securities and Futures Operating Institutions stipulates that securities and futures operating institutions shall meet the following conditions when engaging in private placement management business: (1) Financial and risk control indicators such as net assets and net capital comply with laws, administrative regulations and the provisions of the China Securities Regulatory Commission;

(2) The corporate governance structure is good, and the internal control, compliance management and risk management systems are complete;

(3) Having qualified senior managers and three or more investment managers;

(4) Having an investment research department with no less than three full-time personnel engaged in investment research;

(5) Having a business place, security facilities and information technology system that meet the requirements;

(6) It has not been subjected to administrative punishment or criminal punishment for major violations of laws and regulations in the last two years, has not been taken administrative supervision measures by the regulatory authorities for major violations of laws and regulations in the last year, and is not being investigated by the regulatory authorities or competent authorities for suspected major violations of laws and regulations;

(seven) other conditions stipulated by the China Securities Regulatory Commission in accordance with the principle of prudent supervision. Securities companies, fund management companies and futures companies that set up subsidiaries to engage in private equity asset management business shall be deemed to meet the conditions specified in Item (4) of the preceding paragraph if their investment and research departments provide investment and research services for the subsidiaries.