Investment Operations

Article 18 Subject to the approved investment quota, QFII can invest on the following RMB financial instruments:

1. Shares listed in China's stock exchanges (excluding B shares);
2. Treasuries listed in China's stock exchanges;
3. Convertible bonds and enterprise bonds listed in China's stock exchanges; (4) Other financial instruments as approved by CSRC.

Article 19 QFII may mandate domestically registered securities companies to manage their domestic securities investments.

Each QFII can only mandate one investment institution.

Article 20 For domestic securities investments, QFII should observe the following requirements:

1. Shares held by each QFII in one listed company should not exceed 10% of total outstanding shares of the company;
2. Total shares held by all QFII in one listed company should not exceed 20% of total outstanding shares of the company.

CSRC may adjust the above percentages based on the developments of securities market.

Article 21 QFII's domestic securities investment activities should comply with the requirements as set out in the Guidance for Foreign Investments in Various Industries.

Article 22 Securities firms should preserve the trading and transaction records of QFII for at least 15 years