Page:Circular of the People's Bank of China and the State Administration of Foreign Exchange on the Management of Domestic Securities Investment by RMB Qualified Foreign Institutional Investors.pdf/2

 and main information registration on behalf of the RMB qualified investor.

III. The SAFE shall organize record filing or approval management with regard to the investment quota of a single RMB qualified investor.

The RMB qualified investor, after obtaining the qualification from the CSRC, may obtain an investment quota (basic quota) no higher than a certain proportion of its assets or the securities assets under management ("asset size") through filing; application of an investment quota higher than the basic quota is subject to approval by the SAFE.

The investment quotas to institutions such as overseas sovereign wealth funds, central banks and monetary authorities are not required to be within a certain proportion of assets. They may obtain an investment quota based on their needs to invest in domestic securities markets, and will be subject to record filing management.

IV. Criteria of basic quotas for RMB qualified investors:


 * 1) Where the assets or AUM of an RMB qualified investor or the group it is subordinated to are located overseas, the formula is: equivalent of USD 100 million + average asset size over the past three years *0.2% - quota for the QFII already obtained (in RMB terms, "QFII quota").
 * 2) Where the assets or AUM of an RMB qualified investor or the group it is subordinated to are located in China, the formula is: RMB 5 billion + asset size of the previous year*80% - QFII quota already obtained (in RMB terms).

The foreign exchange rate involved above shall be calculated based on the conversion rates of various currencies against the USD published by the SAFE on the day of application for the previous month.

The PBOC and SAFE may adjust these criteria in consideration of balance of payments, and development and liberalization of capital markets.

V. For record filing of an investment quota within the basic quota for an RMB qualified investor, the following submissions shall be provided to the main custodian:


 * 1) Description of the record filing of an investment quota, and the attached