chapter I general provisions article 1 these measures are formulated in accordance with relevant laws and administrative regulations in order to regulate the investment behavior of qualified foreign institutional investors in the securities market in China and promote the development of the securities market in China. Article 2 Qualified foreign institutional investors mentioned in these Measures (hereinafter referred to as qualified investors) refer to China's overseas fund management institutions, insurance companies, securities companies and other asset management institutions that meet the requirements stipulated in these Measures and have been approved by China Securities Regulatory Commission (hereinafter referred to as China Securities Regulatory Commission) to invest in China's securities market and obtained the quota approval of the State Administration of Foreign Exchange (hereinafter referred to as the State Administration of Foreign Exchange). Article 3 Qualified investors shall entrust domestic commercial banks as custodians of assets and domestic securities companies to handle securities trading activities in China. Article 4 Qualified investors must abide by the laws, regulations and other relevant provisions of China. Article 5 The China Securities Regulatory Commission and the State Administration of Foreign Exchange shall supervise and manage the securities investment activities conducted by qualified investors in China according to law. Chapter II Qualification Conditions and Examination and Approval Procedures Article 6 To apply for the qualification of a qualified investor, the applicant shall meet the following conditions:

(1) The applicant's financial stability, good credit standing, reaching the assets scale specified by the China Securities Regulatory Commission and other conditions, and the risk monitoring indicators meet the laws of the country or region where it is located and the requirements of the securities regulatory agency;

(2) the employees of the applicant meet the requirements of the relevant qualifications of the country or region where they are located;

(3) The applicant has a sound governance structure, a sound internal control system and standardized business conduct, and has not been severely punished by the regulatory authorities of the country or region where it is located in the past three years;

(4) The country or region where the applicant is located has a sound legal and regulatory system, and its securities regulatory agency has signed a memorandum of understanding on regulatory cooperation with the China Securities Regulatory Commission and maintained an effective regulatory cooperation relationship;

(5) Other conditions stipulated by the China Securities Regulatory Commission according to the principle of prudential supervision. Article 7 The assets scale and other conditions mentioned in the preceding article are:

Fund management institution: it has been engaged in fund business for more than five years, and its assets under management in the latest fiscal year are not less than 1 billion US dollars;

Insurance company: it has been engaged in insurance business for more than 3 years, with paid-in capital of not less than US$ 1 billion and securities assets under management of not less than US$ 1 billion in the latest fiscal year;

Securities companies: have been engaged in securities business for more than 3 years, with paid-in capital of not less than US$ 1 billion and securities assets under management of not less than US$ 1 billion in the latest fiscal year;

commercial banks: in the latest fiscal year, their total assets were among the top 1 in the world, and their securities assets under management were not less than US$ 1 billion.

according to the development of the securities market, the China Securities Regulatory Commission may adjust the above-mentioned assets scale and other conditions. Article 8 To apply for QFII qualification and investment quota, the applicant shall submit the following documents to the China Securities Regulatory Commission and the State Administration of Foreign Exchange respectively through the custodian:

(1) an application (including the basic information of the applicant, the investment quota to be applied for, the investment plan, etc.);

(2) certification documents that meet the conditions stipulated in Article 6 of these Measures;

(3) the draft custody agreement signed with the custodian;

(4) audited financial statements for the last three years;

(5) a statement of the source of funds and a letter of commitment not to withdraw funds within the approved time;

(6) the power of attorney of the applicant;

(7) Other documents required by the China Securities Regulatory Commission and the State Administration of Foreign Exchange.

the documents specified in the preceding paragraph, which are written in a foreign language, shall be accompanied by a Chinese translation or a Chinese abstract. Article 9 The China Securities Regulatory Commission shall make a decision on approval or disapproval within 15 working days from the date of receiving the complete application documents. If it decides to approve, it will issue a securities investment business license; If it decides not to approve, it shall notify the applicant in writing. Article 1 After obtaining the securities investment business license, the applicant shall apply to the SAFE for the investment quota through the custodian.

the safe shall make a decision of approval or disapproval within 15 working days from the date of receiving the complete application documents. If it decides to approve, it shall notify the applicant in writing of the approved investment quota and issue a foreign exchange registration certificate; If it decides not to approve, it shall notify the applicant in writing.

if an applicant fails to obtain a foreign exchange registration certificate within one year after obtaining a securities investment business license, his securities investment business license will automatically become invalid. Eleventh in order to introduce medium and long-term investment, closed-end China funds that meet the requirements of Article 6 of these Measures or pension funds, insurance funds and management institutions with good investment records in other markets shall be given priority. Chapter III Custody, Registration and Settlement Article 12 A custodian shall meet the following conditions:

(1) Having a special fund custody department;

(2) The paid-in capital is not less than RMB 8 billion;

(3) having enough full-time personnel familiar with the custody business;

(4) Having the conditions for safe custody of all assets of the fund;

(5) Having safe and efficient liquidation and delivery capabilities;

(6) Having the qualifications of designated foreign exchange banks and RMB business;

(7) There is no record of major violation of foreign exchange control regulations in the last three years.

if a domestic branch of a foreign-funded commercial bank has been operating in China for more than three years, it may apply to become a custodian, and its paid-in capital conditions shall be calculated according to its overseas head office.