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 China securities market and promote the development of the China securities market. Article 2 The term "qualified foreign institutional investors" as mentioned in these Measures refers to China's overseas fund management institutions, insurance companies, securities companies and other asset management institutions that meet the requirements of these Measures and are approved by China Securities Regulatory Commission (hereinafter referred to as China Securities Regulatory Commission) to invest in China's securities market and approved by 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 asset custodians and domestic securities companies to handle domestic securities trading activities. Article 4 Qualified investors must abide by the laws, regulations and other relevant provisions of China. Article 5 The China Securities Regulatory Commission shall supervise and administer the domestic securities investment of QFII according to law, and the State Administration of Foreign Exchange shall administer the foreign exchange of the domestic securities investment of QFII according to law. Chapter II Qualification Conditions and Examination and Approval Procedures Article 6 To apply for the qualification of a qualified investor, the following conditions shall be met:

(1) The applicant's financial stability, good credit standing and asset size meet the requirements of the China Securities Regulatory Commission;

(2) The employees of the applicant meet the relevant qualification requirements 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 in the past three years;

(4) The laws and regulatory systems of the country or region where the applicant is located are perfect, 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;

(five) other conditions stipulated by the China Securities Regulatory Commission in accordance with the principle of prudent supervision. Article 7 To apply for QFII qualification and investment quota, the applicant may submit documents to the China Securities Regulatory Commission and the State Administration of Foreign Exchange respectively through the custodian. Article 8 The China Securities Regulatory Commission shall, within 20 working days from the date of receiving the complete application documents, examine the application materials, solicit the opinions of the State Administration of Foreign Exchange, and make a decision on approval or disapproval. 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 9 An applicant shall, within 65,438+0 years from the date of obtaining the securities investment business license, apply to the State Administration of Foreign Exchange for the investment quota through the custodian.

The State Administration of Foreign Exchange shall, within 20 working days from the date of receiving the complete application documents, examine the application materials, solicit the opinions of the China Securities Regulatory Commission, and make a decision on approval or disapproval. If it decides to approve, it shall give a written reply and issue a foreign exchange registration certificate; If it decides not to approve, it shall notify the applicant in writing. Article 10 In order to encourage medium and long-term investment, priority shall be given to supporting long-term fund management institutions such as pension funds, insurance funds, mutual funds and charitable funds that meet the requirements of these Measures. Chapter III Custody, Registration and Settlement Article 11 A custodian shall meet the following conditions:

(1) Having a special asset custody department;

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

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

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

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

(6) Having the qualification of a designated foreign exchange bank and engaging in RMB business;

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

A domestic branch of a foreign-funded commercial bank that has been operating continuously in China for more than 3 years may apply to become a custodian, and its paid-in capital shall be calculated according to its overseas head office. Article 12 The qualification of custodian must be approved by the China Securities Regulatory Commission and the State Administration of Foreign Exchange. After receiving the complete application documents, the China Securities Regulatory Commission will countersign the State Administration of Foreign Exchange within 30 working days to make a custody qualification license. Article 13 A custodian shall perform the following duties:

(1) Keeping all assets entrusted by QFII;

(2) Handling foreign exchange settlement, sale, receipt and payment and RMB fund settlement business of qualified investors;

(three) to supervise the investment operation of qualified investors, and report to the China Securities Regulatory Commission and the State Administration of Foreign Exchange in a timely manner if their investment instructions are illegal or illegal;

(4) Report the remittance, remittance, settlement and sale of QFII funds to the State Administration of Foreign Exchange within 2 working days from the date of remittance and remittance of principal or income by QFII;

(5) Report to the State Administration of Foreign Exchange on the income and expenditure and asset allocation of QFII's foreign exchange accounts and RMB special accounts within 8 working days after the end of each month, and report to the China Securities Regulatory Commission on the investment and transaction of securities accounts;

(six) within three months after the end of each fiscal year, prepare the annual financial report on the domestic securities investment of qualified investors in the previous year, and submit it to the China Securities Regulatory Commission and the State Administration of Foreign Exchange;

(7) Keeping records of QFII's capital remittance, remittance, exchange, foreign exchange receipts and payments and other relevant information for at least 20 years;

(eight) according to the provisions of the State Administration of foreign exchange, to declare the balance of payments statistics;

(nine) other duties stipulated by the China Securities Regulatory Commission and the State Administration of Foreign Exchange according to the principle of prudential supervision.