An applicant for the qualification as a qualified foreign investor shall meet the following requirements:

1. the applicant shall be in sound financial conditions and good credit standing with experiences in securities and futures investment;

2. the applicant's managerial personnel in charge of domestic investments shall meet relevant professional requirements of the applicant's domicile country or region (if such requirements exist);

3. the applicant shall have sound and effective governance structure, internal control system, and compliance management regime, and, in accordance with relevant regulations, appoint a supervisor to oversee the legality and compliance of the applicant's domestic investment;

4. the applicant's operation is well-managed and has not been subject to any major punishment by regulatory authorities in the latest 3 years or since its establishment; and

5. the applicant does not have any circumstances that would have a significant impact on the operation of the domestic capital market.