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/5

 derivatives transactions, and other receipts prescribed by the PBOC and SAFE. The expenditures include: The prices paid for the purchases of specified securities and other products (including stamp duty, handling fee), funds transferred into the special deposit account for derivatives transactions, principal and investment income remitted outward, payment of investment-related taxes and fees, and other expenditures prescribed by the PBOC and SAFE.

An RMB qualified investor may transfer funds between special deposit accounts for securities transactions opened under the same product or type of fund (own funds; client funds; open-end funds).

The special deposit account for derivatives transactions shall be opened with the futures margin depository bank, custodians or domestic financial institutions (foreign exchange derivatives business agencies) who are qualified for handling derivatives business of RMB against foreign exchange for customers (foreign exchange derivatives business) or other relevant institutions based on the investment type and relevant settlement rules. The incomes of the account include: Funds transferred from the special deposit account for securities transactions, interest income, funds transferred for domestic derivatives transactions, and other incomes approved by the PBOC or the SAFE. The expenditures include: Funds repatriated to the special deposit account for securities transaction, funds transferred out for domestic derivatives transactions, related taxes and fees, and other expenses approved by the PBOC or the SAFE.

X. No transfer shall be allowed between an RMB qualified investor's special deposit accounts and other accounts it opened in China without approval;

Without approval, the funds in the RMB qualified investor's special deposit account shall not be used for purposes other than domestic securities investment and foreign exchange risk management. No cash shall be drawn from the RMB qualified investor's special deposit account.

The custodian shall handle fund transfers for the RMB qualified investors within the receipt and payment scope of the account as stipulated by regulations.

XI. An RMB qualified investor shall submit the following materials for opening a special deposit account: