The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government; the SAFE branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo:

In order to regulate business related to the pilot program on domestic securities investments by fund management companies and securities companies as RMB qualified foreign institutional investors (hereinafter referred to as “RQFIIs”), in accordance with the Measures for the Pilot Program on Domestic Securities Investments by Fund Management Companies and Securities Companies as RMB Qualified Foreign Institutional Investors (Decree No. 76 of the China Securities Regulatory Commission, the People’s Bank of China, and the State Administration of Foreign Exchange, hereinafter referred to as the “Measures”) and the relevant provisions on foreign exchange administration, the relevant issues are hereby notified as follows:

I. The State Administration of Foreign Exchange (SAFE) and its branches and foreign exchange administrative departments (hereinafter referred to as the “foreign exchange authorities”) shall, in accordance with the law, carry out monitoring and management of the investment quota, the outward and inward remittances of funds, and other affairs related to the domestic securities investments by RQFIIs.

II. The RQFII with a Domestic Securities Investment Business License issued upon the approval of the China Securities Regulatory Commission (hereinafter referred to as the “CSRC”) shall entrust its domestic trustee (hereinafter referred to as the “Trustee”) to handle on its behalf the relevant procedures required by this Circular.

III. The quota of domestic securities investments by the RQFII (hereinafter referred to as the “investment quota”) shall be subject to balance control by the SAFE, and the cumulative net inward remittances of RMB funds by the RQFII shall not exceed the approved investment quota.

The RQFII shall not transfer or resell its investment quota for use by other institutions or individuals.

Where the RQFII with an investment quota fails to effectively use the investment quota within 1 year as of the date of its approval, the foreign exchange authorities shall reduce, or even cancel, the investment quota in accordance with the relevant circumstances.

IV. The RQFII shall apply to the SAFE for an investment quota based on the documents and materials set forth in Article 9 of the Measures. In cases of applying for an increase in the investment quota, the RQFII shall submit the materials set forth in Item I and Item IV of Article 9 of the Measures, as well as the Foreign Exchange Registration Certificate for Qualified Foreign Institutional Investors (hereinafter referred to as the “Certificate”) and the statement on domestic securities investments within the existing investment quota, the content of which includes asset allocations and changes, investment profits and losses, compliance, average turnover rates of product investment transactions, and so forth.

V. The RQFII shall, within 5 working days after the opening of its domestic RMB account, file a report on the account opening with the local foreign exchange authorities where the Trustee is located, submit the formal trust agreement to the SAFE, handle the relevant registration procedures, and obtain the Certificate.

Where the RQFII intends to initiate and establish Open-end Funds, it shall, within 20 working days upon initiation, file a Chinese translation of the provisions in the core articles of the fund prospectus with the SAFE.

VI. A RQFII with an investment quota may entrust its Trustee to handle the relevant procedures for the inward and outward remittance of funds and for the purchase of foreign exchange on its behalf based on the approval document of the investment quota issued by the SAFE.

The funds that can be remitted inward by the RQFII include the investment principal remitted inward from overseas, the amount required for the payment of the relevant taxes and fees (such as taxes, trust fees, audit fees, and management fees) and other RMB funds permitted by the People’s Bank of China (PBC) and the SAFE to be remitted inward; the funds that can be remitted outward include such funds as the income from the sale of domestic securities, cash dividends and interest, and other RMB funds permitted by the PBC and the SAFE to be remitted outward; the aforesaid funds may be remitted outward in RMB or in foreign exchange purchased with RMB.

VII. Where the RQFII intends to initiate and establish Open-end Funds, the Trustee may, based on the daily subscribed or redeemed net amount, handle the procedures for the inward remittance of the relevant RMB funds on a daily basis in cases of net subscriptions, and handle the procedures for the outward remittance of the relevant funds in RMB or in foreign exchange purchased with RMB on a daily basis in cases of net redemptions.

For other than Open-end Funds, the RQFII may entrust the Trustee to handle its procedures for the inward or outward remittance of RMB funds or for the outward remittance of funds in foreign exchange purchased with RMB funds on a monthly basis. In cases of investment earnings to be remitted outward in RMB or in foreign exchange purchased with RMB, the audit report issued by the domestic accounting firm and the relevant tax certificates shall also be provided to the Trustee.

VIII. Where the Trustee handles the procedures on behalf of the RWFII for the inward or outward remittance of funds or the purchase of foreign exchange, it shall conduct on a monthly basis an examination based on the authenticity and compliance of the relevant exchange, the receipts and payments of funds, and the timely and accurately recorded relevant information on the Certificate, and shall submit the statements related to the domestic securities investment business of the RQFII to the SAFE in accordance with the following requirements:

(I) Submission of the Breakdown of the Outward and Inward Remittances of Funds and the Purchase of Foreign Exchange by the RQFII (see Schedule 1) within 8 working days after the end of each calendar month;

(II) Submission of the Monthly Report I & II on Domestic Securities Investments by the RQFII (see Schedule 2) within 8 working days after the end of each calendar month;

(III) Submission of the last fiscal year’s Annual Financial Statements I & II on Domestic Securities Investments by RQFIIs (see Schedule 3), as audited by a Chinese certified public accountant within 3 months after the termination of each fiscal year.

IX. Where the RQFII or its Trustee violates the provisions of this Circular, the foreign exchange authorities shall implement the relevant supervisory measures and administrative penalties.

X. The materials submitted as requested by this Circular shall be in Chinese. Should there be counterparts in both Chinese and a foreign language, the Chinese text shall prevail.

XI. This Notice shall come into force as of the date of promulgation.

December 22, 2011