It means due diligence, also known as prudential investigation, which refers to a series of investigations conducted by the acquirer on the target company’s assets and liabilities, operating and financial conditions, legal relationships, and the opportunities and potential risks faced by the target company during the acquisition process.

Investigate Article 1 of the "Measures for the Administration of Due Diligence of Tax-Related Information on Non-resident Financial Accounts" in order to fulfill the obligations stipulated in the "Multilateral Convention on Mutual Administrative Assistance in Tax Administration" and the "Multilateral Competent Authority Agreement on the Automatic Exchange of Tax-related Information on Financial Accounts" and regulate financial institutions'

These measures are formulated in accordance with the provisions of the "Tax Collection and Administration Law of the People's Republic of China", the "Anti-Money Laundering Law of the People's Republic of China" and other laws and regulations regarding the due diligence of tax-related information on residents' financial accounts.

Article 2 These Measures shall apply to financial institutions established within the territory of the People's Republic of China in accordance with the law when conducting due diligence on tax-related information on non-resident financial accounts.

Article 3 Financial institutions shall follow the principles of good faith, prudence and diligence, and for different types of accounts, in accordance with the provisions of these Measures, understand the tax resident status of the account holder or relevant controller, identify non-resident financial accounts, collect and report the accounts

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