Consultation on fund administration under QFII/RQFII
The PBOC and SAFE jointly published the consultation paper on the regulations on fund administration for domestic securities investments by foreign institutional investors, according to their announcement this September that investment quota was abolished.
The consultation paper mainly follows the below principles:
1. Fund administrations for QFII and RQFII are unified, on the basis of removing the investment quota for foreign institutional investors.
2. Foreign institutional investors can transfer foreign currency or RMB or foreign currency and RMB at the same time to the domestic market according to investment needs.
3. Restriction on the number of appointed custodians is lifted.
4. Audit reports on investment income, tax filing forms and other materials are no longer required when repatriating cumulative revenue. Instead, these files are replaced with a tax payment commitment letters.
The deadline for feedback is January 13, 2020.
For more information on the consultation, please visit:
http://www.safe.gov.cn/safe/2019/1213/14884.html (Chinese only)