Legal basis: People's Republic of China (PRC) Securities Investment Fund Law.
Article 3 The rights and obligations of fund managers, fund custodians and fund share holders shall be stipulated in the fund contract in accordance with this Law.
Fund managers and fund custodians shall perform their fiduciary duties in accordance with this Law and the provisions of fund contracts.
Fund share holders of funds established through public offering (hereinafter referred to as Public Offering of Fund) shall enjoy benefits and bear risks according to their fund shares, and the income distribution and risk bearing of funds established through non-public offering (hereinafter referred to as non-public offering funds) shall be stipulated in the fund contract.
Article 4 The activities of securities investment funds shall follow the principles of voluntariness, fairness, honesty and credibility, and shall not harm the national and social public interests.
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.
Property and income obtained by fund managers and fund custodians due to the management and use of fund property or other circumstances shall be classified as fund property.
If a 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.