The fund custodian is the representative of investors' rights and interests, and is the nominal holder or management institution of fund assets. In order to ensure the safety of fund assets, the Fund shall operate according to the principle of separation of asset management and custody, and the fund assets shall be kept by special fund custodians. In China, according to the Interim Measures for Investment Management of Securities Funds, only five commercial banks, namely China Industrial and Commercial Bank, China Agricultural Bank, China Bank, China Construction Bank and Bank of Communications, are qualified as custodians.

In order to fully protect the rights and interests of fund investors and prevent the fund trust property from being used for other purposes, the laws and regulations of securities investment trusts in various countries stipulate that all funds should set up fund custodians, that is, fund custodians, to supervise the investment operation of fund management institutions and keep the fund assets. The concept of fund custodian A fund custodian is an institution that supervises fund managers and keeps fund assets according to the principle of "separation of management and maintenance" in fund operation. The fund custodian and the fund manager sign a custody agreement, perform their duties within the scope stipulated in the custody agreement, and get certain remuneration. Qualification of Fund Custodian The Fund Measures stipulates that a fund established upon approval shall entrust a commercial bank as the custodian, and the main conditions are as follows: 1. Set up a special fund custody department; 2. The paid-in capital is not less than 8 billion yuan; 3. There are enough full-time personnel familiar with the custody business; 4. Have the conditions for safe custody of all assets of the fund; 5. Have safe and efficient clearing and delivery capabilities. Responsibilities of the fund custodian The main responsibilities of the fund custodian are: 1. Safe custody of all assets of the fund; 2. Implement the investment instructions of the fund manager and handle fund transactions in the name of the fund; 3. Supervise the investment operation of the fund manager, and if it is found that the investment instruction of the fund manager is illegal, it will not be implemented, and it will be reported to the China Securities Regulatory Commission; 4. Review the fund net asset value and fund price calculated by the fund manager; 5. Keep the accounting books and records of the fund for more than 15 years; 6. Publish fund performance report, provide fund custody information and report to China Securities Regulatory Commission and China People's Bank; 7. Other duties stipulated in the articles of association of the fund or the fund contract and custody agreement.