1.    INTRODUCTION............................................................................................................... 4

2.    OBJECTIVE..................................................................................................................... 4

3.    RULES AND REGULATIONS FOR CHINA QFII SCHEME.................................................... 4

4.    QUALIFICATION OF QFII.................................................................................................. 5

5.    DOCUMENTATION REQUIRED FOR QFII APPLICATION.................................................... 6

6.    DOCUMENTATION REQUIRED FOR ADDITIONAL QUOTA APPLICATION........................... 7

7.    QFII APPLICATION PROCESSING FLOW.......................................................................... 8

8.    OPERATIONS FLOW........................................................................................................ 8

9.    ACCOUNT MANAGEMENT............................................................................................. 11

9.1      What accounts are required to be set up by QFII....................................................... 11

9.1.1      Special RMB Account....................................................................................... 11

9.1.2      Stock Account with CSDCC............................................................................... 11

9.1.3.     Securities Account(s) with the Mandated Custodian............................................ 11

9.2      Confirmation of Account Opening............................................................................. 12

9.3      Confirmation of Account Closing.............................................................................. 12

10.      CAPITAL INJECTION................................................................................................... 12

11.      SECURITIES TRADING AND SETTLEMENT.................................................................. 13

11.1    Trading.................................................................................................................... 13

11.1.1    Trading Hours................................................................................................... 13

11.1.2    Trading Process................................................................................................ 13

11.1.3    Eligible Instruments that can be invested by QFII................................................ 13

11.2    Settlement............................................................................................................... 14

11.2.1    Settlement Cycle............................................................................................... 14

11.2.2    Settlement Process........................................................................................... 14

11.2.3    Settlement Instruction........................................................................................ 14

11.2.4    Settlement Confirmation.................................................................................... 15

11.2.5    Error Trade....................................................................................................... 15

12.      CORPORATE ACTIONS............................................................................................... 15

12.1    Corporate Actions Types.......................................................................................... 15

12.2    Source of Information.............................................................................................. 15

12.3    Characteristics of Corporate Actions in China............................................................ 16

12.3.1    Cash Dividend.................................................................................................. 16

12.3.2    Bonus Issue...................................................................................................... 16

12.3.3    Rights Issue...................................................................................................... 16

12.3.4    Proxy Voting.................................................................................................... 16

12.4    Initial Public Offering (IPO) in China.......................................................................... 16

12.4.1    On-the-net Subscription..................................................................................... 17

12.4.2    Off-the-net Subscription.................................................................................... 17

13.      TAXATION.................................................................................................................. 17

14.      REPATRIATION OF FUND........................................................................................... 18

14.1    Repatriation of Capital............................................................................................. 18

14.2    Repatriation of Profit............................................................................................... 19

15.      COMMUNICATION WITH CLIENTS................................................................................ 20

16.      REGULATORY REPORTING........................................................................................ 21

17.      DISCLOSURE OF INTEREST....................................................................................... 21

17.1    Equities................................................................................................................... 21

17.1.1    Reporting Requirement, Contents and Restrictions.............................................. 21

17.1.2    Definition of Total Issued Quantity and Holdings................................................ 23

17.1.3    Reporting Requirement...................................................................................... 24

17.1.4    Alert from Standard Chartered........................................................................... 24

17.2    Convertible Bonds................................................................................................... 24

17.2.1    Reporting Threshold.......................................................................................... 24

17.2.2    Definition of Total Issued Quantity and Holdings................................................ 24

17.2.3    Reporting Requirement...................................................................................... 24

17.2.4 Contents of Reporting.......................................................................................... 25

17.2.5 Restriction........................................................................................................... 26

17.2.6    Alert from Standard Chartered........................................................................... 26

18.      SETTLEMENT GUARANTEE FUND FOR SETTLEMENT................................................ 26

18.1    Settlement Payable Fund......................................................................................... 26

18.2    Settlement Guarantee Fund...................................................................................... 26

18.3    Settlement Risk Fund............................................................................................... 27

19.      STANDARD CHARTERED’S SERVICE LEVEL STANDARD.......................................... 27

20.      TRADING AND OUT-OF-POCKET FEES - (EQUITY AND FIXED INSTRUMENTS)........... 28

20.1.   Fees applicable to Normal Trading Activities in Shanghai Market.............................. 28

20.2    Fees applicable to Normal Trading Activities in Shenzhen Market................................ 30

20.3    Others CSDCC Fees................................................................................................ 32

LEGEND.............................................................................................................................. 33

APPENDIX........................................................................................................................... 34