1. product introduction
Custody service for domestic securities investment by qualified foreign institutional investors(hereinafter referred to as QFII domestic securities investment custody service) means that the qualified commercial banks ,pursuanting to the Provisional Measures on Administration of Domestic Securities Investments of Qualified Foreign Institutional Investors, Interim Provisions on the Administration of Foreign Exchange in Domestic Securities Investments of Qualified Foreign Institutional Investors, and related stipulations promulgated by China Banking Regulatory Commission, China Securities Regulatory Commission, and State Administration of Foreign Exchange, accept the entrustment of qualified foreign investors (hereinafter referred to as qualified investors) to enter into custodian agreement with the foreign investors to act as the custodian (s) of their domestic securities investment and provide such intermediate services as assets custody, capital liquidation, investment monitoring, accounting and information disclosure. 2. Legal relationship chart 3. Product Functions
1). Safekeeping all the assets that QFII put under its custody;
2). Conducting QFII’s businesses relating with foreign exchange settlement, sales, receipt, payment and RMB settlement.
3). Establishing special Renminbi accounts on behalf of the QFII, handling capital remittance/repatriation, exchange settlement and sales and other settlement arrangement under special Renminbi account, supervising QFII’s management and application of special Renminbi account in accordance with related state laws and regulations, and reporting regularly to related state regulatory authorities
4). Applying to state securities registration authorities to establish securities account and liquidation reserve account for QFII domestic securities investment under QFII entrustment, and handling swiftest transaction liquidation for QFII domestic securities investment;
5). Supervising the management over QFII domestic securities investment by QFII or their entrusted domestic securities companies in accordance with relevant laws and regulations and the custodian agreement, promptly notifying QFII and its entrusted domestic securities companies in case the investment is found to have violated the laws and regulations or the custodian agreement, and reporting the cases to state regulatory organs such as CSRC and SAFE;
6). Conducting daily accounting and assets valuation for all entrusted QFII domestic securities investment, providing swiftest investment operation information on the entrusted assets to QFII in accordance with to the custodian agreement, and conducting regular preparation of financial statements and custodian reports for all QFII assets and submitting them to QFII;
7). conducting regular reporting on the income and expenditure of special Renminbi account to CSRC and SAFE in accordance with relevant laws and regulations, and preparing and submitting annual financial statement on QFII securities investment as agreed
8). safekeeping all records and materials generated from remittance, repatriation, exchange, receipt, payment and transaction by the QFII , as well as related materials from transaction of QFII domestic securities investment in accordance with relevant laws, regulations, and custodian agreement, which shall be kept no less than 15 years;
9). Other responsibilities stipulated by CSRC, CBRC and SAFE. 4. Benefits of the product
1). Providing comprehensive and professional financial service: qualification application, declaration of investment quota, and establishing various capital and securities accounts along with assistance in account management on commission basis; safekeeping various QFII assets and related documentation, thus facilitating QFII investment service;
2). effective custodian third party supervision mechanism: facilitating improving risk control of QFII assets investment management, safeguarding QFII assets safety and QFII’s benefits;
3). Powerful information service: providing QFII with lastest information such as domestic market dynamic ,policies and regulations and so on in according with the QFII’s personalized demand , and helping QFII in their investment analysis and decision making;
4). Contribution to strengthening effective supervision to QFII assets and behavior by state regulatory organs: the custodians shall submit swiftest reports on QFII assets investment to CSRC and SAFE to ensure law-abiding operation of QFII assets, thus helpful for stable state foreign exchange;
5). safe, quick and convenient liquidation service: effective improvement in investment efficiency of QFII assets 5. Target customer of the service
Qualified foreign institutional investors (QFII) 6. SPDB Qualification for This Service
SPDB has obtained reply from CBRC on approval of SPDB service for QFII domestic securities investment (YJF (2004) No. 177). 7. Contact persons
SPDB Assets custodian Department market development team
Jin Hong Tel.：38784833－72019 E-mail：Jinh5@spdb.com.cn
Dengshi Yue Tel.：38784833－72008 E-mail：Dengsy@spdb.com.cn |
