Legal basis: People's Republic of China (PRC) Securities Investment Fund Law.
Article 87 A non-public offering fund shall be raised from qualified investors, and the cumulative number of qualified investors shall not exceed 200.
The QFII mentioned in the preceding paragraph refers to the units and individuals that have reached the specified asset scale or income level, have the corresponding risk identification ability and risk-taking ability, and their fund share subscription amount is not less than the specified limit.
Specific standards for qualified investors shall be formulated by the the State Council Securities Regulatory Authority.
Article 88 Unless otherwise agreed in the fund contract, the non-public offering of funds shall be managed by the fund custodian.
Article 89 A fund manager who serves as a non-public offering fund shall go through the registration formalities with the fund industry association in accordance with regulations and submit basic information.
Article 90 Without registration, no unit or individual may engage in securities investment activities by using "fund", "fund management" or similar names; However, unless otherwise provided by laws and administrative regulations.
Article 91 Non-public offering funds shall not raise funds from units or individuals other than qualified investors, and shall not publicize and promote them to unspecified objects through newspapers, radio, television stations, the Internet and other public media or lectures, reports and analysis meetings.
Article 92 A fund contract shall be concluded for a non-public offering of funds. The fund contract shall include the following contents:
(1) Rights and obligations of fund share holders, fund managers and fund custodians.
(2) the mode of operation of the fund;
(3) The method, amount and subscription period of the fund;
(4) The investment scope, investment strategy and investment restrictions of the fund.
(5) Principles and implementation methods of fund income distribution;
(six) the relevant expenses borne by the fund;
(7) Contents and methods of providing fund information.
(8) Procedures and methods for subscription, redemption or transfer of fund shares;
(nine) the reasons and procedures for the change, dissolution and termination of the fund contract;
(10) the liquidation method of the fund property.
(eleven) other matters agreed by both parties.
Where a fund share holder transfers a fund share, it shall comply with the provisions of Articles 87 and 91 of this Law.