(deliberated and adopted at the 48th chairman's office meeting of China Securities Regulatory Commission on September 29th, 2003, and promulgated by OrderNo. 17 of China Securities Regulatory Commission, which will take effect on February 1 2004).

Chapter I General Principles

Article 1 These Measures are formulated in accordance with the Securities Law and other relevant laws and administrative regulations in order to standardize the customer asset management activities of securities companies, protect the legitimate rights and interests of investors and maintain the order of the securities market.

Related information: Constitution *** 1

Article 2 Securities companies engaged in customer asset management business shall abide by laws, administrative regulations and the provisions of China Securities Regulatory Commission (hereinafter referred to as "China Securities Regulatory Commission") and shall not cheat customers. These Measures shall apply to securities companies engaged in customer asset management business within the territory of People's Republic of China (PRC).

Article 3 Securities companies engaged in customer asset management business shall follow the principles of fairness and justice, safeguard the legitimate rights and interests of customers, be honest and trustworthy, be diligent and conscientious, and avoid conflicts of interest.

Article 4 A securities company engaging in customer asset management business shall apply to the China Securities Regulatory Commission for the qualification of customer asset management business in accordance with the provisions of these Measures. Securities companies that have not obtained the qualification of customer asset management business shall not engage in customer asset management business.

Article 5 Securities companies engaged in customer asset management business shall sign asset management contracts with customers in accordance with the provisions of these Measures, operate customer assets in the manner, conditions, requirements and restrictions stipulated in the asset management contracts, and provide investment management services for customers in financial products such as securities.

Article 6 A securities company engaged in customer asset management business shall implement centralized operation management within the company, sign asset management contracts with foreign countries, and set up a special department to be responsible for customer asset management business.

Article 7 A securities company engaged in customer asset management business shall establish and improve the risk control system, and strictly separate the customer asset management business from other businesses of the company.

Article 8 Stock exchanges and securities registration and settlement institutions shall formulate special business rules on matters related to customer asset management activities of securities companies and implement standardized and orderly self-discipline management.

Article 9 China Securities Industry Association, as a self-regulatory organization of the securities industry, coordinates and guides the customer asset management activities of securities companies and promotes the healthy development of the industry.

Article 10 The China Securities Regulatory Commission and its dispatched offices shall supervise and manage the customer asset management activities of securities companies in accordance with laws, administrative regulations and these Measures.

Chapter II Business Scope and Business Qualification

Article 11 With the approval of the China Securities Regulatory Commission, a securities company may engage in the following customer asset management businesses:

(1) Handling directional asset management business for a single customer;

(2) Handling collective asset management business for multiple customers;

(3) Handling special asset management business for specific purposes for customers.

Article 12 When a securities company conducts targeted asset management business for a single customer, it shall sign a targeted asset management contract with the customer and provide asset management services for the customer through the customer account.

Article 13 When a securities company handles the collective asset management business for multiple clients, it shall set up a collective asset management plan, sign a collective asset management contract with the clients, entrust the clients' assets to commercial banks or other institutions recognized by the China Securities Regulatory Commission with the qualification of corporate depository of clients' transaction settlement funds, and provide asset management services for clients through special accounts.

Article 14 A securities company may set up a limited aggregate asset management plan and an unrestricted aggregate asset management plan when handling the aggregate asset management business.

The assets of the limited aggregate asset management plan shall be mainly used for investing in government bonds, national key construction bonds, bond-type securities investment funds, corporate bonds listed on the stock exchange and other fixed-income financial products with high credit rating and strong liquidity; The assets and equity securities investment funds invested in equity securities such as stocks with excellent performance, high growth and strong liquidity shall not exceed 20% of the net assets of the plan, and the principle of diversification of investment risks shall be followed.

The investment scope of the unrestricted aggregate asset management plan shall be stipulated in the aggregate asset management contract and shall not be restricted by the provisions of the preceding paragraph.

Article 15 When handling special asset management business for clients, securities companies shall sign special asset management contracts, set specific investment targets according to the special requirements of clients and the specific conditions of assets, and provide asset management services for clients through special accounts.

Securities companies can handle special asset management business by setting up a comprehensive aggregate asset management plan.

Sixteenth securities companies that have obtained the qualification of customer asset management business can handle directional asset management business; To carry out collective asset management business and special asset management business, an application shall be submitted to the China Securities Regulatory Commission item by item in accordance with the provisions of these Measures.

Article 17 A securities company engaged in customer asset management business shall meet the following conditions:

(a) approved by the China Securities Regulatory Commission as a comprehensive securities company;

(2) The net capital is not less than 200 million yuan, which is in line with the provisions of the China Securities Regulatory Commission on various risk supervision indicators of comprehensive securities companies;

(3) The clients' asset management personnel have securities practice qualifications and have no record of bad behavior, and at least five of them have more than three years experience in securities self-management, asset management or securities investment fund management;

(4) It has a good corporate governance structure, a sound internal control and risk management system, and has been effectively implemented;

(5) It has not been subjected to administrative punishment or criminal punishment in the latest year;

(6) Other conditions stipulated by the China Securities Regulatory Commission.

Article 18 A securities company applying for the qualification of customer asset management business shall submit the following materials to the China Securities Regulatory Commission:

(1) an application;

(2) A copy of the securities business license and the business license of the enterprise as a legal person;

(3) a statement of net capital and the latest financial statement audited by an accounting firm with securities-related business qualifications;

(4) A registration form for the senior managers responsible for the customer asset management business;

(5) The name list, resumes, securities qualification certificates and photocopies of identity certificates of the client's asset managers and risk control personnel;

(6) A certificate issued by the applicant that the customer asset management business personnel have no record of bad behavior;

(seven) the internal control and risk management system text and internal control review report issued by an accounting firm with securities-related business qualifications;

(eight) customer asset management business plan and business operation procedures;

(nine) other materials required by the China Securities Regulatory Commission.

Article 19 The China Securities Regulatory Commission shall, in accordance with laws, administrative regulations and these Measures, examine the application materials of securities companies, make a decision on approval or disapproval, and notify the applicant in writing.

Article 20 A securities company shall meet the following requirements when handling the collective asset management business and establishing the collective asset management plan, in addition to meeting the conditions stipulated in Article 17 of these Measures and the qualification of customer asset management business:

(1) It has a sound corporate governance structure, internal control and risk management system, and has been effectively implemented;

(two) the establishment of a limited pool asset management plan, the net capital of not less than 300 million yuan; The net capital of the unrestricted collective asset management plan shall not be less than RMB 500 million;

(3) There is no misappropriation of customer assets such as customer transaction settlement funds in the latest year;

(4) Other conditions stipulated by the China Securities Regulatory Commission.

Twenty-first securities companies to set up a limited pool asset management plan, should be reported to the China Securities Regulatory Commission for the record in advance; The establishment of an unrestricted aggregate asset management plan shall be approved by the China Securities Regulatory Commission.

Article 22 A securities company applying for the establishment of a collective asset management plan shall submit the following materials to the China Securities Regulatory Commission:

(a) Submit reports or applications;

(2) Description of the collective asset management plan;

(3) Draft text of collective asset management contract;

(4) Asset custody agreement;

(5) Promotion plan and promotion agency agreement;

(6) Special explanations on measures to prevent conflicts of interest and control risks in the operation of the collective asset management plan;

(seven) the registration form of senior managers and sponsors responsible for the investment management of the collective asset management plan;

(8) The net capital statement and the latest financial statement audited by an accounting firm with securities-related business qualifications;

(nine) other materials required by the China Securities Regulatory Commission.

Article 23 The China Securities Regulatory Commission shall, in accordance with the provisions of laws, administrative regulations and these Measures, examine securities companies' applications for collective asset management business and the establishment of collective asset management plans.

According to the principle of prudential supervision, China Securities Regulatory Commission can organize experts to review the application for collective asset management business and the establishment of collective asset management plan.

Article 24 The China Securities Regulatory Commission shall review the compliance of the filing materials for the establishment of the limited aggregate asset management plan, and issue a written opinion to the securities company on whether there is any objection; China Securities Regulatory Commission has no objection, the securities company can promote the collective asset management plan submitted for the record.

Article 25 The China Securities Regulatory Commission shall conduct a comprehensive review of the application materials for the establishment of the unrestricted aggregate asset management plan, make a decision on approval or disapproval, and notify the applicant in writing.

Article 26 A securities company shall submit the application materials for the qualification of customer asset management business and the filing application materials for the establishment of a collective asset management plan to the China Securities Regulatory Commission, and send a copy to the dispatched office of the China Securities Regulatory Commission where it is registered.

Chapter III Basic Business Norms

Article 27 A securities company shall, in accordance with the provisions of laws, administrative regulations and these Measures, sign a written asset management contract with customers, clearly stipulating the rights and obligations of both parties and related matters.

An asset management contract shall include the following basic contents:

(1) The type and amount of the customer's assets;

(two) the scope of investment, investment restrictions and investment ratio;

(3) Investment objectives and operating period;

(4) the management method and authority of the customer's assets.

(five) all kinds of risk disclosure;

(six) the way to provide and query customer asset management information;

(seven) the rights and obligations of the parties;

(eight) the calculation method and payment method of the remuneration of managers;

(9) Extraction and payment methods of other expenses related to customer asset management.

(10) Conditions and procedures for the rescission and termination of the contract, as well as the liquidation and return of the client's assets;

(eleven) the liability for breach of contract and the way to resolve disputes;

(twelve) other matters stipulated by the China Securities Regulatory Commission.

Article 28 A collective asset management contract shall not only comply with the provisions of the preceding article, but also stipulate the conditions and date for the collective asset management plan to start operation, the responsibilities of the asset custody institution, the custody methods and fees, the estimation of the client's net asset value, and the confirmation and distribution of investment income.

A collective asset management contract is signed by a securities company, an asset custody institution and a single customer.

Article 29 When a securities company conducts directional asset management business, the net asset value of a single customer shall not be less than RMB/kloc-0.00 million yuan.

Article 30 Securities companies can only accept assets in the form of monetary funds when handling collective asset management business.

Where a securities company establishes a limited aggregate asset management plan, the amount of funds accepted by a single customer shall not be less than RMB 50,000; If an unrestricted aggregate asset management plan is established, the amount of funds accepted by a single customer shall not be less than RMB100000 yuan.

Article 31 A securities company shall set the collective asset management plan as an equal share. Customers enjoy benefits and bear risks according to their share proportion in the assets of the collective asset management plan; Unless otherwise agreed in accordance with the provisions of the second paragraph of Article 33 of these Measures.

Article 32 A securities company may set up a collective asset management plan with or without an agreed term.

The collective asset management contract shall clearly stipulate the time, method, price, procedures and other matters for customers to participate in and withdraw from the collective asset management plan.

Customers participating in the collective asset management plan shall not transfer their shares; Except as otherwise provided by laws and administrative regulations.

Article 33 A securities company may participate in the collective asset management plan set up by the company with its own funds; During the existence of the collective asset management plan, the securities company shall not recover the invested funds.

Where a securities company participates in the collective asset management plan set up by the company with its own funds, it shall stipulate the amount of capital contribution and its responsibilities in the collective asset management contract.

The capital invested by a securities company shall be deducted when calculating the company's net capital according to its responsibilities.

Thirty-fourth securities companies can promote the collective asset management plan by themselves, or entrust other securities companies or commercial banks to promote it on their behalf.

Before participating in the collective asset management plan, the customer should already be a customer of the securities company itself or other promotion agencies.

Article 35 When a securities company establishes a collective asset management plan, it shall complete the establishment and start investment operation within 60 days from the date when the China Securities Regulatory Commission issues a no-objection opinion or makes an approval decision.

Before the establishment of the collective asset management plan, the customer's participation funds can only be deposited in the asset custody institution and cannot be used.

Thirty-sixth securities companies to carry out collective asset management business investment operations, securities trading in the stock exchange, should be concentrated in fixed seats, and to the stock exchange and securities registration and settlement institutions for the record.

The securities in the assets of the collective asset management plan shall not be used for repurchase.

Article 37 A securities company's investment in the clients' assets it manages in the securities issued by the company shall not exceed 10% of the total amount of the securities issued according to the face value of the securities.

The investment of the collective asset management plan in the securities issued by the company shall not exceed 10% of the net asset value of the plan.

Article 38 A securities company shall obtain the customer's consent in advance, inform the asset custodian and the customer afterwards, and report to the stock exchange.

When a securities company handles the collective asset management business, the capital invested by a single collective asset management plan in the securities mentioned in the preceding paragraph shall not exceed 3% of the net asset value of the collective asset management plan.

Thirty-ninth securities companies to handle directional asset management business, by the customer to exercise their securities rights and fulfill the corresponding obligations.

When a securities company invests the customer assets of the directional asset management business in the stocks of listed companies, and the customer shall fulfill the obligations stipulated by laws, administrative regulations and the China Securities Regulatory Commission, the securities company shall immediately notify the relevant customers and urge them to fulfill the corresponding obligations; If the customer refuses to perform, the securities company shall report to the stock exchange.

Article 40 A securities company shall, on behalf of its clients, exercise the right to pool all the securities in the asset management plan and perform the corresponding obligations.

Article 41 A securities company engaged in customer asset management business shall not commit any of the following acts:

(a) Misappropriation of clients' assets;

(2) Make a promise to the customer to ensure that the principal of its assets will not be lost or the minimum income will be obtained;

(3) misleading or inducing customers by fraudulent or other improper means;

(4) Mixing the customer asset management business with other businesses;

(five) for the purpose of transferring the profits and losses of asset management accounts, trading between self-operated accounts and asset management accounts or between different asset management accounts, which harms the interests of customers.

(6) proprietary business seizes the asset management business and harms the interests of customers;

(seven) for the purpose of obtaining commissions or other benefits, using the assets of customers to conduct unnecessary securities transactions;

(8) Insider trading or market manipulation;

(nine) other acts prohibited by laws, administrative regulations and the provisions of the China Securities Regulatory Commission.

Article 42 In handling the collective asset management business, a securities company shall abide by the following provisions in addition to the provisions of the preceding article:

(1) The assets of the collective asset management plan shall not be used for capital borrowing, loans, mortgage financing or external guarantee;

(two) the assets of the collective asset management plan shall not be used for investments that may bear unlimited liability.

Chapter IV Risk Control and Custody of Client Assets

Forty-third securities companies to carry out customer asset management business, it should be clearly agreed in the asset management contract that the customer should bear the investment risks.

Article 44 A securities company shall truthfully disclose the customer's asset management business qualification, management ability and performance, and fully disclose the market risk, the legal risk brought to the customer by the loss of the customer's asset management business qualification and other investment risks.

When introducing the investment income expectation to customers, securities companies must abide by the principle of good faith, provide sufficient and reasonable basis, and make special explanations in written form. This expectation is only for customers' reference, and does not constitute a commitment of the securities company to ensure that the principal of the customer's assets will not be lost or the minimum investment income will be obtained.

Article 45 Before signing an asset management contract, a securities company should know the basic information of its clients' assets and income, risk tolerance and investment preference, and the clients should provide relevant information truthfully.

When establishing a collective asset management plan, a securities company shall specify the customer conditions and promotion scope of the collective asset management plan, and the customers participating in the collective asset management plan shall have corresponding financial investment experience and risk tolerance.

Article 46 A customer shall make a commitment to the legality of the source and use of his assets. If the customer fails to make a commitment or the securities company knows that the source or use of the customer's assets is illegal, it may not sign an asset management contract.

No one may illegally collect other people's funds to participate in the collective asset management plan.

Article 47 Securities companies and other publicity agencies shall take effective measures to make customers fully understand the characteristics, risks, rights and obligations of the collective asset management plan, but they shall not publicize the collective asset management plan through public media such as radio, television and newspapers.

Article 48 A securities company shall provide customers with an accurate and complete asset management report at least once every three months, detailing the configuration and value changes of customers' assets during the reporting period.

A securities company shall ensure that customers can inquire about the customer's asset allocation status and other information according to the time and method agreed in the asset management contract. A securities company shall promptly inform its clients of the major matters agreed in the asset management contract that may affect their interests.

Article 49 When conducting directional asset management business, a securities company shall ensure that customers' assets are independent of their own assets and those of different customers, and establish separate accounts for the assets of different customers.

Article 50 When handling the collective asset management business, a securities company shall ensure that the assets of the collective asset management plan and its own assets, the assets of the collective asset management plan and other customers' assets, and the assets of different collective asset management plans are independent of each other, with separate accounts, independent accounting and independent management.

Article 51 A securities company shall manage the monetary funds in its clients' assets in accordance with the provisions of the China Securities Regulatory Commission. At the request of the client, the securities company shall entrust the client's assets to an asset custody institution for custody.

Article 52 When a securities company handles the collective asset management business, it shall entrust the assets of the collective asset management plan to an asset custody institution for custody.

Securities companies and asset custody institutions shall open separate securities accounts and capital accounts for the collective asset management plan. The name of the securities account shall indicate the name of the securities company and the name of the collective asset management plan.

Article 53 An asset custody institution shall have a special department responsible for the custody of the assets of the collective asset management plan, and strictly separate the assets of the collective asset management plan under custody from its own assets and other assets under management.

Article 54 An asset custody institution shall perform the following duties when handling the asset custody business of the collective asset management plan:

(1) Safely keeping the assets of the collective asset management plan;

(2) To execute the investment or liquidation instructions of securities companies, and be responsible for handling the fund transactions in the asset operation of the collective asset management plan;

(3) Supervising the operation of the collective asset management plan of a securities company, and requiring the securities company to make corrections if it finds that its investment or liquidation instructions violate laws, administrative regulations, the provisions of the China Securities Regulatory Commission or the collective asset management contract; If it fails to make corrections within the time limit, it refuses to implement it and reports to the China Securities Regulatory Commission;

(4) Issue an asset custody report.

(five) other matters stipulated in the collective asset management contract.

Article 55 An asset custody institution has the right to inquire about the operation of the collective asset management plan at any time, and shall regularly check the assets of the collective asset management plan to prevent misappropriation or loss.

Article 56 If the asset management contract should be terminated due to the expiration of the investment management period agreed in the directional asset management contract or other reasons agreed in the contract, the securities company must return all the assets in the customer's account to the customer for self-management after deducting the expenses agreed in the contract.

If the investment management period agreed in the collective asset management contract expires or other reasons agreed in the contract occur, the collective asset management plan shall terminate its operation. After deducting the fees stipulated in the contract, securities companies and asset custody institutions must distribute all the assets of the collective asset management plan to customers in the form of monetary funds according to the proportion of customers' shares or the agreement in the collective asset management contract, and cancel the securities account and capital account.

Chapter V Regulatory Measures and Legal Liabilities

Article 57 If a securities company is investigated by the China Securities Regulatory Commission on suspicion of violating laws and regulations, the China Securities Regulatory Commission will not accept its application for customer asset management business qualification, filing or application for collective asset management plan; If accepted, the audit will be suspended.

Article 58 A securities company shall formulate an internal inspection system for the operation of customer asset management business and conduct self-inspection on a regular basis.

A securities company shall prepare a quarterly report on customer asset management business, and report it to the China Securities Regulatory Commission and the dispatched office of the China Securities Regulatory Commission where it is registered for the record.

Article 59 When a securities company promotes the collective asset management plan, it shall place the formal promotion documents such as the collective asset management contract and the manual of the collective asset management plan in the business premises where the securities company and other promotion agencies promote the collective asset management plan, and report them to the dispatched office of the China Securities Regulatory Commission at the place of registration and promotion for the record.

A securities company shall, within five working days after the establishment of the collective asset management plan, report the establishment of the collective asset management plan to the China Securities Regulatory Commission and its dispatched offices for the record.

Article 60 When conducting an annual audit, a securities company shall also audit the operation of its client asset management business, and require the accounting firm to issue a single audit opinion on each collective asset management plan.

A securities company shall submit the audit results to the China Securities Regulatory Commission and the dispatched office of the China Securities Regulatory Commission where it is registered for the record, and provide individual audit opinions on each collective asset management plan to customers and asset custody institutions.

Article 61 Securities companies and asset custody institutions shall, in accordance with the provisions of relevant laws and administrative regulations, keep accounting books of customer asset management business and properly keep relevant contracts, agreements, transaction records and other documents and materials.

The retention period shall not be less than fifteen years from the date of termination of the asset management contract.

Article 62 The China Securities Regulatory Commission and its dispatched offices shall regularly or irregularly inspect the customer asset management business of securities companies and asset custody institutions, and the securities companies and asset custody institutions shall cooperate with them.

If the senior managers, directly responsible persons in charge and other directly responsible personnel of securities companies and asset custody institutions violate the provisions of these measures, the China Securities Regulatory Commission and its dispatched offices shall take administrative supervision measures such as talking reminders, suspending their duties, recording them in credit files, and determining that they are not suitable for holding relevant positions according to different situations.

Article 63 Securities companies, asset custody institutions, their directly responsible personnel in charge and other directly responsible personnel who engage in customer asset management business in violation of these Measures shall be given administrative punishment by the China Securities Regulatory Commission in accordance with these Measures; Where there are other provisions in laws and administrative regulations, administrative punishment shall be given in accordance with the relevant provisions; If the circumstances are serious and suspected of committing a crime, they shall be transferred to judicial organs according to law and investigated for criminal responsibility.

Securities companies, asset custody institutions and their directly responsible personnel in charge and other directly responsible personnel engage in customer asset management business, which damages the legitimate rights and interests of customers, shall bear civil liability according to law.

Article 64 A securities company that engages in customer asset management business without authorization in violation of these Measures shall be ordered to make corrections, given a warning and fined.

The directly responsible person in charge and other directly responsible personnel shall be warned and fined, and their senior management personnel or securities business qualifications shall be cancelled according to law.

Article 65 A securities company engaged in customer asset management business shall take the initiative to make corrections under any of the following circumstances: if it fails to make corrections, it shall be ordered to make corrections; Refuses to correct, suspend its customer asset management business, or impose a warning or fine; If the circumstances are serious, its customer asset management business qualification shall be cancelled according to law:

(1) Failing to handle the custody of clients' assets in accordance with the provisions of these Measures;

(two) failing to place the relevant materials in the business premises or file with the China Securities Regulatory Commission and its dispatched offices in accordance with the provisions of these Measures;

(three) in violation of the provisions of article thirty-fourth, entrust other institutions or individuals to promote the collective asset management plan;

(four) in violation of the provisions of article thirty-fifth, the use of customers who have not completed the establishment of the collective asset management plan to participate in the capital;

(five) in violation of the provisions of article thirty-sixth, trading without a fixed seat or using the assets of the securities asset management plan for repurchase;

(six) in violation of the provisions of article fourteenth and article thirty-seventh, beyond the scope and proportion of investment;

(seven) in violation of the provisions of article thirty-eighth, not in accordance with the prescribed procedures or engaged in related transactions;

(eight) failing to fulfill the obligation of informing and reporting in accordance with the provisions of article thirty-ninth;

(nine) to engage in the prohibited acts stipulated in Articles 41 and 42 of these Measures;

(ten) in violation of the provisions of article forty-sixth, signed an asset management contract with customers;

(eleven) in violation of the provisions of article forty-seventh of these measures to promote the collective asset management plan;

(twelve) failing to keep the relevant materials in accordance with the provisions of article sixty-first of these measures;

(thirteen) failing to cooperate with the supervision and inspection of the China Securities Regulatory Commission and its dispatched offices in accordance with the provisions of Article sixty-second;

(fourteen) other acts in violation of the provisions of these measures.

The directly responsible person in charge and other directly responsible personnel shall be given a warning or a fine; If the circumstances are serious, the qualification of its senior management personnel or securities practitioners shall be cancelled according to law.

Article 66 An asset custody institution engaged in customer asset management business shall be ordered to make corrections and may be given a warning or a fine under any of the following circumstances:

(a) failing to manage the assets of the collective asset management plan or perform the custody duties in accordance with the provisions of Articles 53 and 54 of these Measures;

(2) Failing to keep relevant information in accordance with the provisions of Article 61 of these Measures;

(three) failing to cooperate with the supervision and inspection of the China Securities Regulatory Commission and its dispatched offices in accordance with the provisions of Article 62 of these Measures.

The directly responsible person in charge and other directly responsible personnel shall be given a warning or a fine; If the circumstances are serious, his securities qualification shall be cancelled according to law.

Sixty-seventh other promotion agencies in violation of the provisions of article forty-seventh of these measures to promote the collective asset management plan, shall be ordered to correct, and impose a warning and a fine.

The directly responsible person in charge and other directly responsible personnel shall be given a warning or a fine; If the circumstances are serious, his securities qualification shall be cancelled according to law.

Article 68 If a securities company is suspended by the China Securities Regulatory Commission for its customer asset management business due to illegal operation or related financial indicators that do not meet the requirements of the China Securities Regulatory Commission, it may not sign a new asset management contract during the suspension period; If the China Securities Regulatory Commission cancels the qualification of customer asset management business according to law, it shall stop asset management activities and terminate the contract in accordance with the provisions of Article 56 of these Measures.

Chapter VI Supplementary Provisions

Article 69 "Custody" as mentioned in these Measures refers to the act of an asset custody institution, according to the entrustment of securities companies and clients, to keep the clients' assets, register the rights and interests, transfer funds and supervise the operation.

The meaning of related party relations as mentioned in these Measures is the same as that in the Accounting Standards for Enterprises-Disclosure of Related Party Relations and Transactions of the Ministry of Finance.

Related information: Ministry regulations *** 1

Article 70 Before the implementation of these Measures, the qualification of entrusted investment management business of securities companies approved by China Securities Regulatory Commission will remain valid, and it will be automatically changed to the qualification of customer asset management business from the date of implementation of these Measures.

Article 71 Where the entrusted investment management business carried out by securities companies before the implementation of these Measures does not conform to the relevant provisions of these Measures, it shall be supervised in accordance with these Measures.

Seventy-second other institutions engaged in customer asset management business approved by the China Securities Regulatory Commission shall abide by these measures.

Article 73 These Measures shall come into force as of February 6, 2004. China Securities Regulatory Commission's Notice on Standardizing the Entrusted Investment Management Business of Securities Companies (No.265 [20065438+0]) and Notice on Relevant Issues Concerning the Collective Entrusted Investment Management Business of Securities Companies (No.2003 [KLOC-0/07) shall be abolished at the same time.

Related information: Ministry regulations ***2.

December 18th, 2003