The establishment of a fund company to manage publicly offered funds shall meet the following conditions and be approved by the the State Council Securities Regulatory Authority.

(1) Having articles of association that conform to this Law and the Company Law of People's Republic of China (PRC);

(2) The registered capital shall not be less than 1 billion yuan, and it must be paid-in monetary capital;

(3) The major shareholder has a good performance in financial business or management of financial institutions, has a good financial status and social reputation, and its asset size meets the standards set by the State Council, and has no illegal record in the last three years;

(four) the number of personnel who have obtained the qualification for fund practice has reached a quorum;

(5) Directors, supervisors and senior managers have corresponding qualifications;

(6) Having business premises, safety precautions and other facilities related to the fund management business that meet the requirements;

(seven) has a good internal governance structure, perfect internal audit monitoring system and risk control system;

(eight) other conditions stipulated by laws and administrative regulations and the the State Council securities regulatory agency approved by the State Council.