Laws of the People's Republic of China

The China Securities Regulatory Commission

Circular of China Securities Regulatory Commission on Issue Concerning the Fund Management Company Setting up Affiliated Agencies within the Territory of China

ZhengJianJiJinZi [2000] No.66

September 27, 2000

Each fund management company:

With a view to tightening the control on fund management company setting up affiliated agencies, hereinafter notify the relating matters on fund management company setting up affiliated agencies in china, according to the relevant State laws, regulations and policies:

1.

Affiliated agencies of the fund management include branch companies and offices.

Branch company and office are totally affiliated bodies without legal-person status, and their legal responsibilities shall be assumed by their managerial companies.

2.

It shall be approved by China Securities Regulatory Commission for fund management company to set up affiliated agencies in china. To set up office in china, the company shall report to China Securities Regulatory Commission for record.

3.

Branch company can deal with the development, sales promotion of the fund product and other operations authorized by the company; and it shall not go beyond the scope of business; the office shall not carry out any profitable activities.

4.

Branch company and office can't be set up in jointly-funded or joint investment forms, and can't be operated in contract or lease ways.

5.

To apply to set up affiliated agencies, fund management company shall submit following materials to China Securities Regulatory Commission:

(1)

application, including reasons to set up the branch company, the name, location and other information of the company to be established;

(2)

resolution of board of directors;

(3)

the main responsibilities and managerial system of the company to be established;

(4)

the resumes of the backbone and leading official of the company to be established;

(5)

other materials required by China Securities Regulatory Commission.

6.

After application to set up branch company being approved, fund management shall go through the procedures of registration at industrial and commercial ministry with the document ratified by China Securities Regulatory Commission according to the related regulation.

7.

After the establishment of the office, the fund management company shall report the location, responsibilities, managerial system, name list of leading official and other information of the office to China Securities Regulatory Commission for records in 15 working date.

8.

To dissolve the branch company or alter the registration matters of the branch company, fund management company shall go through the procedures at industrious and commercial ministration and report to China Securities Regulatory Commission for records according to relating regulations.

9.

Fund management company shall establish effective managerial system in order to tighten the control on branch company and office.

10.

China Securities Regulatory Commission will check branch company and office of the fund management company regularly or irregularly, and the result of check will be an important part of the annual inspection of the fund management company.