Chapter 1 General Provisions Article 1 This Law is enacted in order to regulate the activities of securities investment funds, protect the legitimate rights and interests of investors and relevant parties, and promote the healthy development of securities investment funds and the securities market.

Article 2 Within the territory of the People's Republic of China, securities investment funds (hereinafter referred to as "funds") raised through the public sale of fund shares shall be managed by the fund manager and held by the fund custodian for the benefit of the fund share holders.

This Law shall apply to securities investment activities in the form of a combination; if this Law does not provide for it, the provisions of the "Trust Law of the People's Republic of China", the "Securities Law of the People's Republic of China" and other relevant laws and administrative regulations shall apply

.

Article 3 The rights and obligations of the fund manager, fund custodian 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 the fund contract.

Fund unit holders enjoy returns and bear risks based on the fund units they hold.

Article 4 When engaging in securities investment fund activities, the principles of voluntariness, fairness, good faith and credit shall be followed, and shall not harm national interests and social public interests.

Article 5 The fund contract shall stipulate the mode of fund operation.

Fund operation methods can be closed-end, open-end or other methods.

Funds that adopt a closed-end operation mode (hereinafter referred to as closed-end funds) refer to the total number of approved fund shares that are fixed during the term of the fund contract. Fund shares can be traded on securities trading venues established in accordance with the law, but fund share holders

Funds that are not eligible for redemption.

Funds that adopt an open-end operation mode (hereinafter referred to as open-end funds) refer to funds whose total number of fund shares is not fixed and whose fund shares can be subscribed or redeemed at the time and place stipulated in the fund contract.

The methods for the issuance, trading, subscription and redemption of fund units using other operating methods shall be separately prescribed by the State Council.

Article 6 Fund property is independent of the inherent property of the fund manager and fund custodian.

Fund managers and fund custodians shall not classify fund properties as their own property.

The property and income obtained by the fund manager and fund custodian due to the management and use of fund assets or other circumstances shall be classified as fund assets.

If the fund manager or fund custodian is liquidated due to legal dissolution, cancellation according to law, or declaration of bankruptcy according to law, the fund property shall not belong to its liquidation property.

Article 7 The claims on fund property shall not be offset against the debts on the inherent property of the fund manager or fund custodian; the claims and debts on different fund properties shall not be offset against each other.

Article 8 No enforcement may be made against the fund property for debts other than those borne by the fund property itself.

Article 9 Fund managers and fund custodians shall perform their duties with due diligence and fulfill their obligations of good faith, prudence and diligence when managing and using fund assets.

Fund practitioners shall obtain fund practitioner qualifications in accordance with the law, abide by laws and administrative regulations, and abide by professional ethics and behavioral norms.

Article 10 Fund managers, fund custodians and fund share issuance agencies may establish industry associations to strengthen industry self-discipline, coordinate industry relations, provide industry services, and promote industry development.

Article 11 The securities regulatory authority of the State Council shall supervise and manage securities investment fund activities in accordance with the law. Chapter 2 Fund Manager Article 12 The fund manager shall be a fund management company established in accordance with the law.

Serving as a fund manager must be approved by the securities regulatory authority of the State Council.

Article 13 To establish a fund management company, the following conditions must be met and approved by the securities regulatory authority of the State Council: (1) Have articles of association that comply with the provisions of this Law and the Company Law of the People's Republic of China; (2) Registration

The capital shall not be less than RMB 100 million and must be paid-in monetary capital; (3) The major shareholder shall have good business performance and good social reputation engaged in securities operations, securities investment consulting, trust asset management or other financial asset management.

, has no illegal records in the past three years, and has a registered capital of no less than RMB 300 million; (4) The number of persons who have obtained fund business qualifications reaches a quorum; (5) There are business premises, safety precautions and fund management business that meet the requirements

Other facilities; (6) Have a complete internal audit monitoring system and risk control system; (7) Other conditions stipulated by laws, administrative regulations and the securities regulatory authority of the State Council approved by the State Council.

Article 14 The securities regulatory authority of the State Council shall, within six months from the date of accepting the application for the establishment of a fund management company, conduct an examination in accordance with the conditions stipulated in Article 13 of this Law and the principles of prudent supervision, and make a decision on approval or disapproval.

The applicant shall be notified; if approval is not granted, the reasons shall be stated.

A fund management company that establishes a branch, amends its articles of association or changes other major matters must submit them to the securities regulatory authority of the State Council for approval.

The securities regulatory authority of the State Council shall make a decision on approval or disapproval within 60 days from the date of acceptance of the application, and notify the applicant; if disapproval, the reasons shall be stated.