the China Securities Regulatory Commission, the People’s Bank of China Notice of the China Securities Regulatory Commission and the People’s Bank of China about Promulgating the Interim Provisions on the Zheng Jian Fa [2004] No. 78 The regulatory bureaus of the China Securities Regulatory Commission in all the provinces, autonomous regions, municipalities directly For the purpose of regulating the operations of monetary market funds and protecting the lawful rights and interests of the fund investors, China Securities Regulatory Commission People’s Bank of China August 16, 2004 Interim Provisions on the Management of Monetary Market Funds Article 1 For the purpose of promoting the development of securities investment funds (hereinafter refers to SIF), regulating the raising and Article 2 The term of “monetary market funds” as referred to in the present Provisions means the funds merely invested into the monetary market Any fund, whose name contains “money”, “cash”, “flowing”, “ready money”, “short-term bond” or other similar words, shall meet the Article 3 Monetary market fund shall be invested into the financial instruments as follow: (1) Cash; (2) Fixed-term bank deposits and lump sum deposit slips within one year (including one year); (3) Bonds with a residual maturity not more than 397 days (including 397 days); (4) Repurchases of bonds with a residual maturity within one year (including one year); (5) Central bank bills within one year (including one year); and (6) Other monetary market instruments with good liquidity as acknowledged by the China Securities Regulatory Commission (CSRC) and the Article 4 Any monetary market fund may not be invested in the following financial instruments: (1) Stocks; (2) Convertible bonds; (3) Bonds with a residual maturity more than 397 days; (4) Enterprise bonds with a credit rating below AAA; or (5) Other financial instruments prohibited by the CSRC and the PBC. Article 5 The investment combination of monetary market fund shall comply with the following provisions: (1) The investments ratio of the short-term enterprise bond issued by the same company shall be within 10% of the net value of the assets (2) The ratio of the deposits in the same commercial bank with the fund custodian qualifications shall be within 30 % of the net value (3) The ratio of the balance of the repurchase of bonds from the national inter-bank bond market shall not exceed 40 % of the net value (4) Other ratio limits provided by the CSRC and the PBC. Article 6 The average residual maturity of the investment combination of monetary market fund shall not exceed 180 days. Article 7 Excluding the circumstances as listed below, the residual maturity of a bond in the investment combination of a monetary market fund (1) With regard to a bond with changeable interest rate or floating interest rate on the basis of the market interest rates, if the interest (2) The residual maturity of a repurchase agreement is equal to the remaining period from the computation date to the date for dealing (3) Other circumstances otherwise as provided for by the CBRC. Article 8 The monetary market fund shall disclose the average residual maturity of the investment combination of SIF in the part of investment Article 9 With regard to a monetary market fund for which price-offering is made every day on the basis of par value, in the fund contract, Article 10 As to monetary market fund for which no purchase or redemption fee is charged, not more than 0.25 % of the fund may be drawn from Article 11 A fund management company shall state it clearly in its prospectuses and publicity materials, that an investor’s purchasing monetary Article 12 A monetary market fund shall adopt stable and proper accounting and estimation approaches so as to ensure that the net value of the In case the fund estimation approach as mentioned in the preceding paragraph can’t fairly reflect the value of the fund under a special The occurrence of the circumstance as mentioned in the preceding paragraph shall be disclosed through the financial accounting statement Article 13 The activities such as raising, purchase, redemption, investment, information disclosure and publicity of a monetary market fund shall Article 14 When conducting the activities of the dealings and settlements in the national inter-bank market, monetary market fund shall abide Article 15 The right to interpret the present Provisions shall reside in the China Securities Regulatory Commission and the People’s Bank of Article 16 The present Provisions shall be implemented as of the date of promulgation. |
the China Securities Regulatory Commission, the People’s Bank of China
2004-08-16