Decision on Amending the Detailed Rules for the Implementation of the Collective Asset
Management Business of Securities Companies
I. Article 1 is amended to read: “To regulate the collective asset management business of securities
companies, these Detailed Rules are formulated in accordance with the Securities Law of the
People’s Republic of China, the Securities Investment Fund Law of the People’s Republic of
China, the Regulation on the Supervision and Administration of Securities Companies, and the
Administrative Measures for the Client Asset Management Business of Securities Companies
(Order No. 93, CSRC, hereinafter referred to as the “Administrative Measures”).”
II. Article 5 is amended to read: “Securities companies engaging in the collective asset
management business shall provide services for qualified investors, create collective asset
management plans (hereinafter referred to as the “collective plans” or “plans”), and serve as
managers of the plans.
“A collective plan shall meet the following conditions:(1) The size of funds raised is not more than
5 billion yuan.(2) The amount of participation by a single client is not less than 1 million yuan.(3)
The number of clients is not more than 200.”
III. Article 6 is amended to read: “The plan assets shall be independent from those owned by
securities companies, asset custody institutions, and share registration institutions. Securities
companies, asset custody institutions, and share registration institutions may not include any plan
assets in their own assets.
“Where a securities company, an asset custody institution, or a share registration institution is
bankrupt or is liquidated, the plan assets are not its bankruptcy property or liquidation property.”
IV. Article 7 is amended to read: “Securities companies, promotion agencies, and share
registration institutions may not include the settlement funds from the sale of collective plans in
their own assets. Where a securities company, a promotion agency, or a share registration
institution is bankrupt or is liquidated, the settlement funds from the sale of collective plans are
not its bankruptcy property or liquidation property. No entity or individual may misappropriate in
any form the settlement funds from the sale of collective plans.
“Settlement funds from the sale of collective plans are funds collected by securities companies and
their promotion agencies and transferred between the client settlement accounts, the special
accounts designated by the share registration institutions for collective plans, and the custody
accounts of the plan assets, including but not limited to funds from plan participation or
withdrawal and cash dividends under collective plans.”
V. Article 14 is deleted.
VI. Article 15 is renumbered as Article 14 and amended to read: “The funds raised under
collective plans may be used for investment in stocks, bonds, stock index futures, commodity
futures, and other investment products legally issued within China and traded on securities and
futures exchanges; bills of the Central Bank, short-term financing bonds, medium-term notes,
interest rate forwards, interest rate swaps, and other investment products traded on inter-bank
markets; securities investment funds, securities companies’ special asset management plans,
commercial banks’ wealth management plans, collective fund trust plans, and other financial
products issued with the approval of or after recordation with the financial regulatory authorities;
and other investment products recognized by the CSRC.
“Collective plans may participate in margin trading and short selling, and may also loan the
securities held under the plans to securities finance companies as the underlying securities of short
selling.
“Securities companies may legally create collective plans to raise funds within China but invest
such funds in overseas financial products recognized by the CSRC.”
VII. Article 21 is renumbered as Article 20 and amended to read: “It shall be prohibited to raise
funds from entities and individuals other than qualified investors and promote collective plans
among unspecific investors through public media such as newspapers, journals, radio stations,
television stations, and Internet or in manners such as lectures, seminars, and analysis meetings. It
shall be prohibited to promote collective plans by signing supplemental agreements on guaranteed
principal or proceeds or by improper means such as false publicity, exaggeration of expected
benefits, and commercial bribery.”
VIII. Article 28 is renumbered as Article 27 and amended to read: “The formation of a collective
plan shall meet the following conditions:(1) The promotion process complies with laws,
administrative regulations, and the provisions of the CSRC.(2) The amount of funds raised is not
less than 30 million yuan.(3) There are not less than two clients.(4) The collective asset
management contract and the description of the plan are complied with.(5) Other conditions
prescribed by the CSRC.”
IX. Article 29 is renumbered as Article 28 and amended to read: “Securities companies shall place
the plan assets under the custody of asset custody institutions qualified for the fund custody
business.
“Asset custody institutions shall, according to the provisions of the CSRC and the collective asset
management contracts, perform obligations such as the safekeeping of plan assets, the handling of
fund collection and payment, and the oversight of investment activities of securities companies.”
X. Article 31 is renumbered as Article 30 and amended to read: “Securities companies may serve
as or employ securities transfer agents as the share registration institutions of collective plans, and
agreements shall be reached on share registration matters.
“Securities companies, asset custody institutions, securities transfer agents, and promotion
agencies shall, according to relevant agreements, handle the share registration, fund settlement,
and other matters on plan participation, conversion or withdrawal.
“Share registration institutions for collective plans with access to the central exchange platform
for fund registration data shall complete data backup through the platform on a daily basis; and
those without access to the platform shall conduct data backup on a monthly basis in a manner
prescribed by the data centers of the securities and futures industry.”
XI. Article 35 is renumbered as Article 34 and amended to read: “An upper limit is not required
for a collective plan to subscribe for new shares of a company, but the amount of subscription may
not exceed the total amount of cash held by the collective plan, and the quantity of subscription
may not exceed the total quantity of shares currently issued by the issuer.”
This Decision shall come into force on the date of issuance.
The Detailed Rules for the Implementation of the Collective Asset Management Business of
Securities Companies, as amended and adjusted in the numbering of clauses according to this
Decision, shall be reissued.