Recently, QFII Regulation Revision Seminar, organized by Fund Supervision Department of China Securities Regulatory Commission and undertook by ICBC Assets Custody Department, was successfully held in Beijing. Mr. Zou Lin, Chief of Capital Project Management Department of SAFE, Mr. Qi Bin, Deputy Director of Fund Supervision Department of China Securities Regulatory Commission and other leaders of regulatory department presented at the seminar. Representatives from four Custody Banks -- ICBC, China Construction Bank, HSBC and Citibank, four QFIIs including Credit Suisse First Boston, and more than 30 financial services institutions as Shanghai Securities Exchange, Shenzhen Securities Exchange, China Securities Registration Settlement Company and China Gold Company attend this meeting.

This Meeting was convened with a background to further improve QFII regulations and promote the healthy development of QFII system. It is held on the foundation of experiences on pilots run on QFII system, which was launched in China in 2002. Leaders at all levels from Securities Regulatory Commission and SAFE placed very high regards to this seminar. Seminar participants integrated the investment standard of international capital markets and the real situation in China, discuss the revision and made valuable suggestions and comments on the new drafts proposed by regulatory departments. There are Management Practices for Qualified Foreign Institutional Investors on Domestic Securities Investment, Notice on issues in the implementation of "Management Practices for Qualified Foreign Institutional Investors on Domestic Securities Investment" and Foreign Exchange Management Regulations for Qualified Foreign Institutional Investors on Domestic Securities Investment.

During the seminar, heated discussions were made on the issues of lower down QFII eligibility, simplify the approval process, open independent securities accounts, foreign exchange accounts and RMB sub-accounts, implement multi-securities dealers system, adjust long-term fund locking period, release the term limitation on outward fund remittance after the expiration of locking period.

Seminar participants all wished that after the adjustments and revisions made by regulatory departments on relevant QFII regulations, more foreign institutional investors who meet the criteria could be introduced, development in QFII market would be faster, and China capital market would be further improved and developed. Opening of this seminar is an important moment during China promotion on further reform in banking and finance system. Adjustments on QFII regulations and new policies will definitely improve the investment environment of domestic capital market and its competitive capacity. Foreign institutional investors would find that it becomes more attractive to invest in China.