Announcement of the State Administration of Foreign Exchange [2016] No.1 - Administrative Provisions on Foreign Exchange for Domestic Securities Investments by Qualified Foreign Institutional Investors
Announcement of the State Administration of Foreign Exchange [2016] No.1 - Administrative Provisions on Foreign Exchange for Domestic Securities Investments by Qualified Foreign Institutional Investors
Announcement of the State Administration of Foreign Exchange [2016] No.1 - Administrative Provisions on Foreign Exchange for Domestic Securities Investments by Qualified Foreign Institutional Investors
Announcement of the State Administration of Foreign Exchange [2016] No.1
February 3, 2016
According to the Administrative Regulations of the People's Republic of China on Foreign Exchange and other relevant provisions, the State Administration of Foreign Exchange has formulated the Administrative Provisions on Foreign Exchange for Domestic Securities Investments by Qualified Foreign Institutional Investors (see the appendix), which is hereby promulgated and shall come into force as of the date of promulgation.
Administrative Provisions on Foreign Exchange for Domestic Securities Investments by Qualified Foreign Institutional Investors
Chapter I General Provisions
Article 1 In order to regulate the foreign exchange administration for domestic securities investments by qualified foreign institutional investors (hereinafter referred to as the "QFIIs"), the Administrative Provisions on Foreign Exchange for Domestic Securities Investments by Qualified Foreign Institutional Investors (hereinafter referred to as these "Provisions") are formulated in accordance with the Administrative Regulations of the People's Republic of China on Foreign Exchange (Order of the State Council No.532, hereinafter referred to as "Administrative Regulations on Foreign Exchange"), the Administrative Measures for Domestic Securities Investments by Qualified Foreign Institutional Investors (Order of the China Securities Regulatory Commission, the People's Bank of China and the State Administration of Foreign Exchange No.36) and other relevant provisions.
Article 2 For the purpose of these provisions, the QFIIs refer to the foreign institutional investors that obtain licenses from the China Securities Regulatory Commission (hereinafter referred to as the "CSRC") and are engaged in investing in the Chinese domestic securities market.
Article 3 QFIIs shall appoint domestic custodians (hereinafter referred to as "custodians") to represent them in going through the relevant formalities specified herein.
Article 4 The State Administration of Foreign Exchange (hereinafter referred to as the "SAFE") and its branches as well as foreign exchange administrative offices shall supervise, administer and examine the investment quotas, foreign exchange accounts, receipts, payments, and capital remittances, etc., for domestic securities investments made by QFIIs.
Chapter II Administration of Investment Quotas
Article 5 QFII domestic securities investment quotas shall be administered by the State and the investment quotas of individual QFIIs shall be subject to record-filing and approval administration by the SAFE.
A QFII may, upon acquisition of the qualification license from the CSRC, obtain an investment quota not higher than a certain proportion (hereinafter referred to as the "basic quota") of its assets size or the securities asset size managed by it (hereinafter referred to as the "asset size") in the form of record-filing. Any application for an investment quota higher than the basic quota shall be approved by the SAFE.
Foreign sovereign wealth funds, central banks and monetary authorities are not subject to the restriction on the proportion in the asset size in terms of investment quotas, and they may be granted with the appropriate investment quotas based on their own demands for investments in the domestic securities market.
Article 6 The basic quota of a QFII shall comply with the following standards:
1.
......
Announcement of the State Administration of Foreign Exchange [2016] No.1
February 3, 2016
According to the Administrative Regulations of the People's Republic of China on Foreign Exchange and other relevant provisions, the State Administration of Foreign Exchange has formulated the Administrative Provisions on Foreign Exchange for Domestic Securities Investments by Qualified Foreign Institutional Investors (see the appendix), which is hereby promulgated and shall come into force as of the date of promulgation.
Administrative Provisions on Foreign Exchange for Domestic Securities Investments by Qualified Foreign Institutional Investors
Chapter I General Provisions
Article 1 In order to regulate the foreign exchange administration for domestic securities investments by qualified foreign institutional investors (hereinafter referred to as the "QFIIs"), the Administrative Provisions on Foreign Exchange for Domestic Securities Investments by Qualified Foreign Institutional Investors (hereinafter referred to as these "Provisions") are formulated in accordance with the Administrative Regulations of the People's Republic of China on Foreign Exchange (Order of the State Council No.532, hereinafter referred to as "Administrative Regulations on Foreign Exchange"), the Administrative Measures for Domestic Securities Investments by Qualified Foreign Institutional Investors (Order of the China Securities Regulatory Commission, the People's Bank of China and the State Administration of Foreign Exchange No.36) and other relevant provisions.
Article 2 For the purpose of these provisions, the QFIIs refer to the foreign institutional investors that obtain licenses from the China Securities Regulatory Commission (hereinafter referred to as the "CSRC") and are engaged in investing in the Chinese domestic securities market.
Article 3 QFIIs shall appoint domestic custodians (hereinafter referred to as "custodians") to represent them in going through the relevant formalities specified herein.
Article 4 The State Administration of Foreign Exchange (hereinafter referred to as the "SAFE") and its branches as well as foreign exchange administrative offices shall supervise, administer and examine the investment quotas, foreign exchange accounts, receipts, payments, and capital remittances, etc., for domestic securities investments made by QFIIs.
Chapter II Administration of Investment Quotas
Article 5 QFII domestic securities investment quotas shall be administered by the State and the investment quotas of individual QFIIs shall be subject to record-filing and approval administration by the SAFE.
A QFII may, upon acquisition of the qualification license from the CSRC, obtain an investment quota not higher than a certain proportion (hereinafter referred to as the "basic quota") of its assets size or the securities asset size managed by it (hereinafter referred to as the "asset size") in the form of record-filing. Any application for an investment quota higher than the basic quota shall be approved by the SAFE.
Foreign sovereign wealth funds, central banks and monetary authorities are not subject to the restriction on the proportion in the asset size in terms of investment quotas, and they may be granted with the appropriate investment quotas based on their own demands for investments in the domestic securities market.
Article 6 The basic quota of a QFII shall comply with the following standards:
1.
......