Recently, State Administration of Foreign Exchanges approved QFII customer under ICBC custody -- Credit Suisse First Boston (CSFB) to increase investment quota of USD 150 million. This was the second such approval obtained by SCFB this year since last time in March 14, 2005, which increases investment quota of USD 100 million. Till now, the total investment quota of CSFB was up to USD 300 million. This investment quota increase of CSBF brought ICBC custody of QFII investment quota to USD 425 million, ranking in front of all China banks.

Increase of CSFB investment quota took less than 4 months from application till approval. During the whole application process, ICBC spent every detailed effort in the preparatory stage and actively facilitate communications between CSFB and Regulatory Departments. Application was then approved at the earliest available time at last.

There were 2 stages since the launch of QFII system. First stage was a pilot beginning from November 2002 till April 2005. It took off when Peoples' Bank of China, Securities Regulatory Commission and State Administration of Foreign Exchanges published the QFII Law and Regulations. Altogether there was investment quota of USD 4 billion and 27 QFII organizations approved. Second stage started from April 2005. Based on the results and assessments on the pilot, Securities Regulatory Commission and State Administration of Foreign Exchanges revised and completed concerned QFII Law and Regulations to further develop QFII market. Moreover, Regulatory Departments made an announcement in July this year. USD 6 billion were added to the existing USD 4 billion QFII quota as one the corresponding measures to step up the development of capital market. Total QFII investment quota reached USD 10 billion till then. Since State Administration of Foreign Exchanges released the USD 6 billion mark, the approval of CSFB to increase investment quota this time was the fourth QFII to be allowed after Heng Sheng Bank, Futong Bank and Merrill International.

As QFII investment quota further increased and QFII system further improved, wider and brighter globalization prospect lies in front of ICBC custody service. When competing against foreign banks, ICBC custody service will be further upgraded in its service level and quality.