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/7

 be adjusted on a monthly basis. The RMB qualified investor shall adjust the positions of foreign exchange derivatives it holds within five working days after the end of each month based on the size of the RMB assets for the domestic securities investment verified by the custodian to ensure compliance with the principle of real demand transactions.

XIV. The type and settlement of foreign exchange derivatives handled by a foreign exchange derivatives business agency for a RMB qualified investor shall be implemented in accordance with the existing management regulations on foreign exchange derivatives.

XV. The foreign exchange derivatives business agency shall comply with the provisions on the management of synthetic positions in foreign exchange settlement and sales, and perform the relevant statistical reporting obligations of foreign exchange settlement and sales in accordance with the relevant regulations on foreign exchange administration.

XVI. The deposit rate of the funds in the bank settlement account an RMB qualified investor opens under this Circular is subject to the provisions developed by the PBOC.

XVII. In case of the following cases, an RMB qualified investor shall realize its assets and close its accounts within one month, with the corresponding investment quota nullified:


 * 1) Its qualification has been revoked by the CSRC.
 * 2) The SAFE cancels the investment quota of the RMB qualified investor in accordance with the law.
 * 3) Other circumstances prescribed by the PBOC and SAFE.

XVIII. For the open-end funds initiated by an RMB qualified investor, its custodian may handle the inward and outward remittances in RMB for it every day, based on the netting subscribed or redeemed. For other products or funds, the investor may entrust its custodian with handling the inward and outward remittances of funds in RMB.

The custodian may handle the outward remittance of the realized accumulated income