The Fund Trustee and the Fund Administrator

Article 15 The fund established upon approval shall entrust a commercial bank as the fund trustee for trusteeship of the fund assets and entrust a fund administering company as the fund administrator for administration and employment of the fund assets.

Article 16 The fund trustee must be subject to the examination and approval of CSSCC and the People's Bank of China.

Article 17 The fund trustee and the fund administrator shall be independent of each other administratively and financially, and their high-ranking administrative staff shall not take up concurrent positions of the other party.

Article 18 The fund trustee shall have the following qualifications:

1. has a special fund trusteeship department;
2. has an actual capital not less than RMB 8 billion Yuan;
3. has adequate specialized staff conversant with trusteeship business;
4. has facilities for the safekeeping of the total assets of the fund; and
5. has capabilities of secure and high-efficiency settlement and delivery.

Article 19 The fund trustee shall fulfill the following functions and responsibilities:

1. safekeeping of the total assets of the fund;
2. execution of the investment directives of the fund administrator and responsibility for the handling of fund transactions under the name of the fund;
3. supervision over the investment operations of the fund administrator, non-execution of the investment directives in violation of laws and regulations upon discovery and a report submitted to CSSCC;
4. re-verification and examination of the net value of the fund assets and the fund price calculated by the fund administrator;
5. safekeeping of the account books and records of the fund for more than 15 years;
6. issuance of a report on the achievements of the fund, provision of information on the fund trusteeship and a report submitted to CSSCC and the People's Bank of China; and
7. other functions and responsibilities prescribed by the fund deed and the trusteeship agreement.

Article 20 The fund trustee must strictly separate the fund assets under its trusteeship from the fund trustee's own assets, establish separate accounts for different funds and conduct the administration according to separate accounts.

Article 21 The fund trustee having any of the following circumstances must, upon approval of CSSCC and the People's Bank of China, retire from office:

1. disbandment of the fund trustee, revocation and bankruptcy in accordance with law or its assets taken over by the person taking over;
2. the fund administrator has ample reasons to hold that change of the fund trustee is in the interests of the fund holders;
3. fund holders representing over 50% of the fund units demand the retirement from office of the fund trustee; and
4. the People's Bank of China has ample reasons to hold that the fund trustee is unable to continue to fulfill the functions and responsibilities of fund trusteeship.

Article 22 The new fund trustee shall be subject to the examination and approval of CSSCC and the People's Bank of China; uponapproval, the former fund trustee may retire from office. The fund under the trusteeship of the former fund trustee without being taken over by a new fund trustee shall terminate.

Article 23 An application for the establishment of a fund administering company shall be subject to the examination and approval of CSSCC.

Article 24 Establishment of a fund administering company shall have the following qualifications:

1. the main sponsors shall be a securities company and a trust and investment company established in accordance with relevant state provisions;
2. the operating status of the main sponsors has been good with consecutive profits in the last three years;
3. the actual capital of each sponsor shall be no less than RMB 300 million Yuan;
4. the minimum actual capital of the fund administering company proposed to be established shall be RMB 10 million Yuan;
5. has a clear-cut and feasible fund administration plan;
6. has qualified personnel for fund administration; and
7. other qualifications prescribed by CSSCC.

Relevant documents shall be presented in accordance with the requirements of CSSCC for an application for the establishment of a fund administering company.

Article 25 A fund administering company may, upon approval, engage in the following businesses:

1. business of fund administration; and
2. sponsorship for the establishment of funds.

Article 26 A fund administrator shall fulfill the following functions and responsibilities:

1. employment of the fund assets in investment and administration of the fund assets in accordance with the fund deed;
2. payment of fund benefits to the fund holders in time and in full amount;
3. safekeeping of the account books and records of the fund for more than 15 years;
4. compilation of the financial report of the fund, making an announcement in time and submitting a report to CSSCC;
5. calculation and announcement of the net value of the fund and the net value of each fund unit asset; and
6. other functions and responsibilities prescribed by the fund deed.

The administrator of an open fund shall also, in accordance with the relevant state provisions and the provisions of the fund deed, handle timely and accurately the bidding and redemption of the fund.

Article 27 The fund administrator having any of the following circumstances must retire from office upon approval of CSSCC:

1. disbandment of the fund administrator, revocation and bankruptcy in accordance with law or its assets being taken over by the person taking over;
2. the fund trustee has ample reasons to hold that change of the fund administrator is in the interests of the fund holders;
3. the fund holders representing more than 50% of the fund units demand the retirement from office of the fund administrator; and
4. CSSCC has ample reasons to believe that the fund administrator is unable to continue to fulfill the functions and responsibilities of fund administration.