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	CIRCULAR OF CHINA SECURITIES REGULATORY COMMISSION CONCERNING NEWLY ISSUED STOCKS SUBSCRIPTION OF SECURITIES INVESTMENT FUNDS

	(No.9 [2002] of China Securities Regulatory Commission March 12, 2002)


SUBJECT : SECURITIES INVESTMENT FUNDS; NEWLY ISSUED STOCK SUBSCRIPTION
ISSUING DEPARTMENT : CHINA SECURITIES REGULATORY COMMISSION
ISSUE DATE : 03/12/2002
IMPLEMENT DATE : 03/12/2002
LENGTH : 258 words
TEXT :

In order to further strengthen the regulation of securities investment funds (hereinafter referred to "funds") and to promote the normative development of the securities market, the relevant issues concerning the participation of funds in the subscription of newly issued stocks are hereby notified as follows in accordance with the Interim Measures for the Management of Securities Investment Funds and other relevant provisions:

I. Fund management companies shall aim at being trustworthy to the market and the investors, abide by the principle of good faith, observe the provisions of the fund agreements and use the fund assets to participate in the subscription of newly issued stocks.

II. When a fund management company uses its fund assets to participate in the subscription of newly issued stocks, the amount applied for by a singular fund may not exceed the total assets of that fund, and the stocks applied for by a singular fund may not exceed the total amount of stocks issued by the issuing company that time.

III. All the fund management companies shall take practical and effective measures to guarantee that, after the funds have purchased the stocks, the stocks issued by one company held by a singular fund may not exceed 10% of the net assets of that fund; the stocks held by all the funds managed by one fund management company may not exceed 10% of the total capital stock of that company.

IV. All the fund management companies shall improve their internal control system and various procedures for decision-making, and abide by the aforesaid provisions strictly.