chapter I general provisions article 1 this law is formulated in order to regulate the activities of securities investment funds, protect the legitimate rights and interests of investors and relevant parties, and promote the healthy development of securities investment funds and capital markets. Article 2 This Law shall apply to the establishment of securities investment funds (hereinafter referred to as funds) by public or private fundraising within the territory of the People's Republic of China, which shall be managed by fund managers and managed by fund custodians, and conduct securities investment activities for the benefit of fund share holders; Matters not covered by this Law shall be governed by the Trust Law of the People's Republic of China, the Securities Law of the People's Republic of China and other relevant laws and administrative regulations. Article 3 The rights and obligations of fund managers, fund custodians and fund share holders shall be stipulated in fund contracts in accordance with this Law.

fund managers and fund custodians shall perform their fiduciary duties in accordance with this law and the fund contract.

fund share holders of funds established through public offering (hereinafter referred to as public offering funds) enjoy the benefits and bear the risks according to their fund shares, and the benefits distribution and risk bearing of funds established through non-public offering (hereinafter referred to as non-public offering funds) are stipulated in the fund contract. Article 4 Securities investment fund activities shall follow the principles of voluntariness, fairness, honesty and credibility, and shall not harm the interests of the state and the public. Article 5 The debts of the fund property shall be borne by the fund property itself, and the fund share holders shall be liable for the debts of the fund property to the extent of their capital contribution. However, if the fund contract has other provisions in accordance with this Law, such provisions shall prevail.

fund property is independent of the inherent property of fund managers and fund custodians. Fund managers and fund custodians may not classify fund property as their inherent property.

the property and income obtained by fund managers and fund custodians due to the management, use or other circumstances of the fund property are classified as the fund property.

if the fund manager or fund custodian is liquidated due to dissolution, cancellation or bankruptcy according to law, the fund property does not belong to its liquidation property. Article 6 The creditor's rights of the fund property shall not be offset against the debts of the inherent property of the fund manager and fund custodian; Creditor's rights and debts of different fund properties shall not offset each other. Article 7 A debt not borne by the fund property itself shall not be enforced on the fund property. Article 8 The tax related to the investment of fund property shall be borne by the fund share holders, and the fund manager or other withholding agents shall withhold and remit the tax according to the relevant provisions of the state on tax collection. Article 9 Fund managers and fund custodians shall manage and use the fund property, and fund service institutions shall fulfill their duties and fulfill their obligations of honesty, credibility, prudence and diligence when engaging in fund service activities.

fund managers should abide by prudent operating rules, formulate scientific and reasonable investment strategies and risk management systems, and effectively prevent and control risks.

fund practitioners should have the qualifications for fund practice, abide by laws and administrative regulations, and abide by professional ethics and codes of conduct. Article 1 Fund managers, fund custodians and fund service institutions shall establish securities investment fund industry associations (hereinafter referred to as fund industry associations) in accordance with this Law to conduct industry self-discipline, coordinate industry relations, provide industry services and promote industry development. Article 11 the State Council Securities Regulatory Authority shall supervise and manage the activities of securities investment funds according to law; Its dispatched offices shall perform their duties as authorized. Chapter II Fund Managers Article 12 A fund manager shall be a legally established company or partnership.

the fund manager of a publicly offered fund shall be a fund management company or other institution approved by the the State Council securities regulatory authority in accordance with relevant regulations. Article 13 To establish a fund management company to manage publicly offered funds, it shall meet the following conditions and be approved by the securities regulatory authority of the State Council:

(1) It has articles of association that conform to this Law and the Company Law of the People's Republic of China;

(2) The registered capital is not less than 1 million yuan, and it must be paid-in monetary capital;

(3) The major shareholder shall have good performance in operating financial business or managing financial institutions, good financial status and social reputation, the asset scale shall meet the standards stipulated by the State Council, and there shall be no illegal record in the last three years;

(4) The number of personnel who have obtained the qualification for fund practice has reached a quorum;

(5) Directors, supervisors and senior management personnel have corresponding qualifications;

(6) It has a business place, safety precautions and other facilities related to the fund management business that meet the requirements;

(7) Having a good internal governance structure, a sound internal audit monitoring system and a risk control system;

(8) Other conditions as stipulated by laws and administrative regulations and as stipulated by the State Council Securities Regulatory Authority approved by the State Council. Article 14 The the State Council securities regulatory authority shall, within six months from the date of accepting the application for the establishment of a fund management company, conduct an examination in accordance with the conditions stipulated in Article 13 of this Law and the principle of prudent supervision, make a decision on approval or disapproval, and notify the applicant; If it is not approved, it shall explain the reasons.

if a fund management company changes the shareholders holding more than 5% of the shares, changes the actual controller of the company, or changes other major matters, it shall be reported to the the State Council securities regulatory authority for approval. The State Council securities regulatory authority shall make a decision of approval or disapproval within 6 days from the date of accepting the application, and notify the applicant; If it is not approved, it shall explain the reasons.