Interim Provisions on Money Market Fund Management

Interim Provisions on the Management of Money Market Funds

In order to regulate the operation of money market funds and protect the legitimate rights and interests of fund investors, The China Securities Regulatory Commission and the People's Bank of China have formulated the "Interim Provisions on the Management of Money Market Funds", which are hereby promulgated and shall come into effect on the date of promulgation.

China Securities Regulatory Commission

People's Bank of China

August 16, 2004

Article 1 In order to promote the development of securities investment funds (hereinafter referred to as funds), standardize currency The raising, operation and related activities of market funds protect the legitimate rights and interests of investors and relevant parties. In accordance with the "Securities Investment Fund Law", "Securities Investment Fund Operation Management Measures", "Regulations on the Management of Fund Management Companies Entering the Interbank Market", etc. Regarding relevant regulations, these regulations are formulated.

Article 2: Money market funds as mentioned in these regulations refer to funds that invest only in money market instruments. Funds that use "currency", "cash", "liquidity", "cash", "short-term bonds" and other similar words in their fund names shall comply with the relevant requirements of these regulations.

Article 3 Money market funds shall invest in the following financial instruments:

(1) Cash;

(2) Bank time deposits and certificates of deposit within one year (including one year);

(3) Bonds with a remaining term of less than 397 days (including 397 days);

(4) Bonds with a term of less than one year Bond repurchases within one year (including one year);

(5) Central bank bills with a maturity within one year (including one year);

(6) Other money market instruments with good liquidity recognized by the China Securities Regulatory Commission and the People's Bank of China.

Article 4 Money market funds shall not invest in the following financial instruments:

(1) Stocks;

(2) Convertible bonds;

(3) Bonds with remaining term exceeding 397 days;

(4) Corporate bonds with credit ratings below AAA;

(5) Investment prohibited by the China Securities Regulatory Commission and the People's Bank of China Other financial instruments.

Article 5 The investment portfolio of money market funds shall comply with the following provisions:

(1) The proportion of investment in short-term corporate bonds issued by the same company shall not exceed 10% of the net asset value of the fund;

(2) Deposited in a fund with Deposits in the same commercial bank with custody qualifications shall not exceed 30% of the net asset value of the fund; deposits deposited in the same commercial bank without fund custody qualifications shall not exceed 5% of the net asset value of the fund;

(3) The fund balance of bonds being repurchased in the national inter-bank bond market shall not exceed 40% of the fund's net asset value;

(4) Other proportional restrictions stipulated by the China Securities Regulatory Commission and the People's Bank of China.

Article 6 The average remaining period of the money market fund investment portfolio , shall not exceed one hundred and eighty days.

Article 7 Except for the circumstances listed below, the remaining term of the bonds in the portfolio refers to the calculation date to the maturity of the bond The number of days remaining until the date:

(1) Variable interest rate or floating interest rate bonds with market interest rates as the base interest rate, bonds whose interest rate adjustment frequency is less than one year The remaining term is equal to the remaining time from the calculation date to the next interest rate adjustment date;

(2) The remaining term of the repurchase agreement is equal to the calculation date from the underlying bond transaction specified in the agreement The remaining time on the date;

(3) Other circumstances otherwise specified by the China Securities Regulatory Commission.

Article 8 Money market funds shall report in annual reports, semi-annual reports and quarterly reports. The Portfolio Report section discloses the average remaining maturity of the Fund Portfolio

The average remaining maturity of the Fund Portfolio.

Article 9 Money market funds that are quoted at par value every day can stipulate in the fund contract that the method of income distribution is dividend reinvestment, and income distribution should be carried out on a daily basis.

Article 10 For money market funds that do not charge subscription or redemption fees, a certain fee may be accrued from the fund assets at a ratio of no more than 2.5% per thousand, specifically for the sales and fund holdings of the fund. The annual report of the fund shall provide a special explanation of the expenditure of this fee.

Article 11 The fund management company shall include in the prospectus of the money market fund And it is stated in the promotional materials that investors purchasing money market funds do not mean depositing funds in banks or depository financial institutions. The fund management company does not guarantee that the fund will make a profit, nor does it guarantee a minimum return.

Article 12 Money market funds shall adopt robust and appropriate accounting and valuation methods to ensure that the net asset value of the fund can fairly reflect the value of the fund. The accounting methods adopted shall It shall be stipulated in the fund contract, and the possible impact of adopting this method on the fluctuation of the net value of the fund shall be disclosed in the prospectus.

Fund valuation specified in the preceding paragraph If the method cannot fairly reflect the value of the fund under special circumstances, the money market fund may use other valuation methods. The special circumstances and the valuation method should be stipulated in the fund contract.

If a money market fund encounters the circumstances mentioned in the preceding paragraph, it shall be disclosed in the financial accounting report part of the annual report or semi-annual report.

Thirteenth In addition to complying with these regulations, the fundraising, subscription, redemption, investment, information disclosure, publicity and promotion activities of money market funds shall also comply with the Securities Investment Fund Law, the Measures for the Operation and Management of Securities Investment Funds, and the Measures for the Administration of Securities Investment Fund Sales, "Administrative Measures for Information Disclosure of Securities Investment Funds", "Regulations on the Administration of Fund Management Companies' Entry into the Interbank Market" and other relevant regulations.

Article 14 The trading and settlement activities of money market funds in the national interbank market shall comply with the management regulations of the National Interbank Market of the People's Bank of China and accept the supervision and dynamic inspection of the People's Bank of China. .

Article 15 The China Securities Regulatory Commission and the People's Bank of China are responsible for the interpretation of these regulations.

Article 16 These regulations shall come into effect on the date of promulgation.