China Securities Regulatory Commission, Provisions on Issues Relevant to the Implementation of the «Measures for the Administration of Securities Investment Fund Management Companies»

Issued: September 20 2012
Effective: November 1 2012

Main contents: When calculating the percentage of foreign-owned equity in a Sino-foreign equity joint venture fund management company, if there is some foreign investment in the domestic shareholder then, in principle, the foreign shareholding percentage in the domestic shareholder of the joint venture shall be multiplied by its equity percentage in the joint venture and then added to the shareholding percentage (directly held) of the foreign shareholder of the joint venture. In the following two circumstances, matters shall be handled in accordance with the following criteria:

(1) if, after the establishment of the joint venture, the domestic shareholder (including its de facto controller) is listed or makes an additional offering of shares abroad, the additional foreign-owned equity in the domestic shareholder shall not be calculated with the equity held by the foreign shareholder of the joint venture, unless the offshore listing of the domestic shareholder or its de facto controller results in control of the domestic shareholder passing to foreign investors;