The Securities Investment Fund Law was promulgated in 2003 and amended in 2012 and 2015 respectively. The latest revision entered into force on April 24, 2015.
There are 154 articles in total.
The key points are as follows:
1.This Law shall apply to the formation of a securities investment fund through the public or non-public raising of capital, the management of the fund by a fund management institution, the custody of the fund by a fund custodian, and the securities investment activities conducted for the benefit of the fund share holders, within the territory of China.
2.The rights and obligations of a fund management institution, a fund custodian and the fund share holders shall be agreed upon in a fund contract in accordance with this Law.
3.The debts incurred by fund assets shall be repaid with fund assets only. Fund assets shall be independent from a fund management institution’s or a fund custodian’s own assets.
4.Fund management companies establishing and managing publicly-offered funds shall be subject to approval by the securities regulatory department of the State Council.
5.Appointment of a commercial bank as fund custodian shall be subject to approval by the securities regulatory department of the State Council jointly with the banking regulatory department of the State Council; appointment of any other financial institution as fund custodian shall be subject to approval by the securities regulatory department of the State Council.
6.The public offering of a fund shall be registered with the securities regulatory authority of the State Council. The fund shares may be offered only after the application for the registration of the fund offering is approved.
7.To apply for the listing and trading of fund shares, the fund management institution shall file an application with a stock exchange.
8.Non-publicly offered funds shall be offered to qualified investors, and the number of qualified investors shall not exceed 200 cumulatively.