Legal analysis: QFII refers to financial institutions established with the approval of relevant financial regulatory authorities, including securities companies, fund management companies and their subsidiaries, futures companies, commercial banks, insurance companies and trust companies, and private fund managers registered with China Asset Management Association.

Legal basis: Article 6 of the Regulations on Foreign Exchange Management of Domestic Securities Investment by Qualified Foreign Institutional Investors. Qualified investors shall provide the following materials to the State Administration of Foreign Exchange when applying for investment quota and opening foreign exchange accounts and RMB special accounts:

(1) A written application submitted by the custodian and qualified investors, including: basic information of qualified investors, description of capital sources and investment plans, letter of commitment of qualified investors not to withdraw their capital during the lock-up period, and registration form of qualified foreign institutional investors of the State Administration of Foreign Exchange (see Annex1for a sample);

(2) A photocopy of the securities investment business license issued by China Securities Regulatory Commission (hereinafter referred to as China Securities Regulatory Commission);

(3) A notarized power of attorney from the QFII to the custodian;

(4) Other materials required by the State Administration of Foreign Exchange.

When applying for increasing the investment quota, qualified investors shall provide the Foreign Exchange Registration Certificate of Qualified Foreign Institutional Investors (hereinafter referred to as the Foreign Exchange Registration Certificate) and a description of the existing investment quota in China, including asset allocation and changes, investment profits and losses, compliance performance and average turnover rate of stock transactions.