The fund custodian is an institution that supervises the fund manager and keeps the fund assets according to the principle of "separation of management and custody" in fund operation. The fund custodian and the fund manager sign a custody agreement, perform their duties and collect certain remuneration within the scope stipulated in the custody agreement.

to sum up, the fund custodian should be a financial institution that is completely independent of the fund management institution, has certain economic strength, has paid-in capital of a certain scale, and has industry reputation.

China's Securities Investment Fund Law stipulates that the fund custodian shall be a commercial bank established according to law and qualified for fund custody.

To apply for the qualification of fund custody, the following conditions shall be met, which shall be approved by the the State Council Securities Regulatory Authority and the the State Council Banking Regulatory Authority:

1. A special fund custody department shall be established;

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

3. The number of full-time personnel who have obtained the qualification certificate for fund practice has reached a quorum;

4. Having the conditions for safe custody of all assets of the fund;

5. Having safe and efficient liquidation and delivery capabilities;

6. It has a business place that meets the requirements, safety precautions and other facilities related to the fund custody business;

7. Have a sound internal audit monitoring system and risk control system;

8. Other conditions as stipulated by laws and administrative regulations, and as stipulated by the State Council Securities Regulatory Authority and the State Council Banking Regulatory Authority approved by the State Council.