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/4

 custodian and other custodians, and effectively implement the requirements on quota management.

The SAFE will regularly publish the information on the RMB qualified investors' investment quotas at its website, www.safe.gov.cn.

VII. The investment quota for RMB qualified investors is subject to balance management. This means that the RMB qualified investor's accumulated net inward remittances shall not surpass the already filed and approved investment quota.

VIII. No RMB qualified investor shall sell or transfer the investment quota in any form to any other institution or individual without approval.

In case that an RMB qualified investor fails to effectively use the investment quota within one year following the day the quota is filed or approved, the SAFE shall have the right to recover the investment quota not yet used, in all or in part.

IX. RMB qualified investors shall open a basic RMB deposit account for foreign institutions, in accordance with the Management Measures for RMB Bank Settlement Account for Foreign Institutions (Yinfa No. 249 [2010]), and the Circular of the People's Bank of China on Opening and Using RMB Bank Settlement Account for Foreign Institutions (Yinfa No. 183 [2012]). The funds related to its domestic securities investment must not be deposited in basic deposit account.

An RMB qualified investor who has opened a basic deposit account shall open an RMB special deposit account (special deposit account). Any RMB qualified investor may open corresponding special deposit accounts for their own funds, client funds, and open-end funds where necessary.

Special deposit accounts are divided into special deposit accounts for RMB qualified investors to invest in domestic securities markets (special deposit accounts for securities transactions), and special deposit accounts for domestic derivatives transactions (special deposit accounts for derivatives transactions).

The special deposit account for securities transactions shall be opened with the custodian. The incomes of the account include: investment principal remitted from overseas by the RMB qualified investor, proceeds from sales of securities, cash dividends, interest income, funds transferred from special deposit accounts for