Highlights of relevant measures, regulations and laws concerning QFII

The QFII applicant must meet the following criteria:

• Sound financial and credit status. Risk control indicators meet the requirements set by laws and securities authorities under applicant's home jurisdiction
• Sound management structure and internal control system
• If a fund management institution:
  It must have operated its fund business for over 5 years with the most recent fiscal year managing assets of not less than $5 billion.

• If an insurance company:
  It must have founded for over 5 years and manage securities assets of not less that $5 billion in the most recent fiscal year.

• If a securities company:
  It must have operated securities business for over 30 years with paid-in capital of not less than $1 billion and manage securities assets of not less than $10 billion in the most recent fiscal year.

• If a commercial bank:
  It must rank among the top 100 of the world in terms of total assets for the most recent fiscal year and manage securities assets of not less than $10 billion.

• If other institutional investors (for example Pension funds, Charities foundations, Endowment funds, Trust companies, Government investment management companies, etc.):
  It must have founded for over 5 years and manage or hold securities assets of not less than $5 billion in the most recent fiscal year.

Qualified investors can appoint domestically founded securities companies to manage their domestic securities investment.

Within the approved investment quota, qualified investors can invest in the following RMB financial instruments:

• Shares listed on the stock exchanges;
• Bonds listed on the stock exchanges;
• Securities investment fund;
• Warrants listed on the stock exchanges;
• Other financial instruments approved by China Securities Regulatory Commission (CSRC).