Measures for the Pilot Program of Securities Investment in China by RMB Qualified
Foreign Institutional Investors
Article 1These Measures are formulated in accordance with the relevant laws and administrative
regulations for purposes of regulating RMB qualified foreign institutional investors' securities
investment in China, promoting the development of the securities market and protecting the lawful
rights and interests of investors.
Article 2For the purpose of these Measures, “RMB qualified foreign institutional investor
(hereinafter referred to as the “RQFII”)” means a foreign legal person that uses overseas RMB
funds to make securities investment in China with the approval of the China Securities Regulatory
Commission (“CSRC”), and after obtaining the investment quota approved by the State
Administration of Foreign Exchange (“SAFE”).
Article 3The CSRC shall, in accordance with law, supervise and administer the securities
investment made by RQFIIs in China, the People's Bank of China (“PBC”) shall, in accordance
with law, administer the RMB bank accounts opened within China by RQFIIs, and the SAFE shall,
in accordance with law, administer the investment quotas of RQFIIs, and the PBC shall, jointly
with the SAFE, monitor and administer the inward and outward remittance of capital of RQFIIs in
accordance with law.
Article 4To carry out securities investment business in China, an RQFII shall authorize a domestic
commercial bank qualified as a QFII custodian to be responsible for its asset custody business, and
authorize a domestic securities company to purchase or sell securities on its behalf. An RQFII may
authorize a domestic asset management institution to manage its domestic securities investment.
Article 5To apply for the qualification of an RQFII, an applicant shall satisfy the following
conditions: (1) It has a sound financial status and good credit standing, and its registration place,
business qualification and so on comply with the provisions of the CSRC;(2) It has sound
corporate governance and effective internal control, and its employees meet the relevant
requirements for the qualification of practice in the country or region where it is located;(3) It has
sound business operations, and has not been imposed upon a heavy punishment by the local
regulatory authority in the previous three years or since the date when it is formed; and(4) Other
conditions as prescribed by the CSRC under the principle of prudent supervision.
Article 6The CSRC shall examine an RQFII's qualification for engaging in securities investment
business in China, and make a decision of approval or disapproval within 60 days upon receipt of
the complete application documents. In the case of approval, it shall give a written reply and issue
a securities investment business license; and in the case of disapproval, it shall notify the applicant
in writing.
Article 7An RQFII which has obtained the qualification for engaging in securities investment
business in China shall apply to the SAFE for an investment quota on the basis of the following
materials:(1) an application report, including the basic information of the applicant, a statement on
fund sources, a plan on securities investment in China, and so on;(2) a photocopy of the securities
investment business license issued by the CSRC;(3) a notarized power of attorney to the domestic
custodian; and(4) other materials as required by the SAFE.The SAFE shall make a decision of
approval or disapproval within 60 days upon receipt of the complete application documents from
the RQFII. In the case of approval, it shall give a written reply and issue a registration certificate;
and in the case of disapproval, it shall notify the applicant in writing.
Article 8The domestic custodian of an RQFII shall perform the following duties:(1) having the
custody of all the assets entrusted by the RQFII;(2) supervising the operation of securities
investment made by the RQFII in China;(3) handling the relevant businesses such as the inward
and outward capital remittance of the RQFII;(4) reporting balance-of-payments statistics in
accordance with the relevant provisions;(5) submitting relevant business reports and statements to
the CSRC, the PBC and the SAFE; and(6) performing other duties as prescribed by the CSRC, the
PBC and the SAFE under the principle of prudent supervision.
Article 9When investing in RMB financial instruments within the approved investment quota, an
RQFII shall abide by the relevant regulatory requirements. The CSRC and the PBC may,
according to the macro management requirements and development of the pilot program,
determine and adjust the overall investment proportions and types.An RQFII shall invest in the
inter-bank bond market in accordance with the relevant provisions of the PBC.
Article 10When carrying out the pilot program of securities investment business in China, an
RQFII shall comply with the provisions of Chinese laws and regulations on shareholding
proportions, information disclosure and so on and the requirements of other relevant regulatory
rules.An RQFII shall, in accordance with the relevant provisions of the PBC, enter the information
on the inward and outward remittance of RMB funds into the Cross-border RMB Receipt and
Payment Information Management System of the PBC through the domestic custodian.
Article 11An RQFII shall handle the inward and outward remittance of capital in accordance with
the relevant requirements for the management of investment quotas.An RQFII may remit the
principal and investment proceeds abroad through using RMB or through purchasing foreign
exchange.
Article 12The CSRC, the PBC and the SAFE may require the RQFIIs, domestic custodians,
securities companies and other institutions to provide relevant information on the RQFIIs, and
make necessary inquiries and inspections.
Article 13Where an RQFII falls under any of the following circumstances, it shall report to the
CSRC, the PBC and the SAFE within five workdays:(1) modification of the domestic custodian;(2)
modification of the person in charge of the institution;(3) adjustment of the equity structure;(4)
adjustment of the registered capital;(5) merger with any other institution;(6) involvement in any
major lawsuit or any other major event;(7) imposition of any heavy punishment overseas; or(8)
any other circumstance as prescribed by the CSRC, the PBC and the SAFE.
Article 14Where an RQFII falls under any of the following circumstances, it shall apply for a new
securities investment business license:(1) modification of its name;(2) merger by any other
institution; or(3) any other circumstance determined by the CSRC and the SAFE.During the
period of application for a new securities investment business license, the RQFII may continue its
securities investment, unless the CSRC deems under the principle of prudent supervision that
suspension is necessary.
Article 15Where an RQFII falls under any of the following circumstances, it shall surrender its
securities business license and foreign exchange registration certificate to the corresponding
issuing authorities:(1) It fails to apply to the SAFE for an investment quota within one year after
obtaining the securities investment business license;(2) It is dissolved or enters into the
bankruptcy procedure or is taken over; or(3) Any other circumstance as determined by the CSRC,
the PBC and the SAFE.
Article 16Where an RQFII or its domestic custodian violates any law or regulation during the
process of carrying out the pilot program of securities investment business in China, the CSRC,
the PBC and the SAFE may take corresponding regulatory measures and impose administrative
punishment according to law.
Article 17These Measures shall come into force on the date of issuance, and the Measures for the
Pilot Program of Securities Investment in China by RMB Qualified Foreign Institutional Investors
of Fund Management Companies and Securities Companies issued on December 16, 2011 shall be
repealed simultaneously.