QFII Application Procedure

Briefing for Applying QFII Qualification

1.Apply through Custodian
Appoint a Custodian.
Normally 3–5 weeks for preparing documents.
Importance of the Investment Plan is VERY HIGH.
Importance of the Wording and Format is HIGH.

2.Obtain QFII License from CSRC
Submit QFII application to CSRC via Custodian.
CSRC will assess and make decision within 20 working days upon receipt of complete application.

3.Obtain QFII Investment Quota
Apply within one year upon receipt of QFII license.
Submit quota application to SAFE via Custodian.
Additional quota application can only be submitted one year after last approval.

4.Account Opening
Apply to open special RMB and FX accounts (1–2 weeks).
Final approval from PBOC for special RMB account.
Open securities accounts in China Securities Depository and Clearing Company (SH/SZ).

5.Transfer Funds
Inject fund within 6 months after being approved.
Final quota is subject to actual paid-in amount.
Investment is not permitted until capital injected reaches US$ 20 million.

6.Start Investing
Designate local Broker.
Finalize agreement among Custodian, QFII and Broker.

Information mentioned above is only for reference. Corresponding regulations issued by CSRC and SAFE prevail.