Custody Registration and Settlement

Article 12 A custodian should meet the following requirements:

1. Has a specific fund custody department;
2. With paid-in capital of no less than RMB 8 billion;
3. Has sufficient professionals who are familiar with custody business;
4. Can manage the entire assets of the fund safely;
5. Has qualifications to conduct foreign exchange and RMB business;
6. No material breach of foreign exchange regulations for the recent three years.

Domestic branches of foreign-invested commercial banks with more than three years of continual operation are eligible to apply for the custodian qualification. Their paid-in capital eligibility shall be based on their overseas headquarters' capital.

Article 13 Approvals from CSRC, People's Bank of China (hereinafter referred to as "PBOC") and SAFE are required for custodian status.

Article 14 Domestic commercial banks should submit the following documents to CSRC, PBOC and SAFE to apply for custodian status:

1. Application Forms;
2. Copy of its financial business licence;
3. Management system in relation to its custody business;
4. Documents verifying that it has efficient information and technology system;
5. Other documents as required by CSRC; PBOC and SAFE.

CSRC; together with PBOC and SAFE; will review application documents and decide whether to approve the applications or not.

Article 15 A custodian shall perform the following duties:

1. Safekeeping all the assets that QFII put under its custody;
2. Conducting all QFII related foreign exchange settlement, sales, receipt, payment and RMB settlement businesses;
3. Supervising investment activities of QFII, and reporting to CSRC and SAFE in case QFII investment orders are found to have violated laws or regulations;
4. Reporting to SAFE about foreign exchange remittance and repatriation of QFII, in two working days after QFII remits/repatriates its principal/proceeds ;
5. Reporting to CSRC and SAFE about the status of QFII's RMB special account, in five working days after the end of each month;
6. Compiling an annual financial report on QFII's domestic securities investment activities in the previous year and sending it to CSRC and SAFE in three months after the end of each accounting year;
7. Keep the records and other relatedmaterials on QFII's fund remittance, repatriation, conversion, receipt and payment for no less than 15 years;
8. Other responsibilities as defined by CSRC, PBOC and SAFE based on prudent supervision principles.

Article 16 A custodian should strictly separate its own assets from those under its custody.

A custodian should set up different accounts for different QFII, and manage those accounts separately. Each QFII can only mandate one custodian.

Article 17 QFII should mandate its custodian to apply for a securities account on its behalf with securities registration and settlement institution. When applying for a securities account on behalf of the QFII, a custodian should bring the QFII' mandate and its Securities Investment Licence and other valid documents, and file with CSRC the relevant situation within five working days after opening a securities account.

QFII should mandate its custodian to open a RMB settlement account on its behalf with securities registration and settlement institution. The custodian shall be responsible for the settlement of QFII's domestic securities investment, and shall file with CSRC and SAFE the relevant situation within five working days after opening a RMB settlement account.