On December 16, 2011, China Securities Regulatory Commission (“CSRC”), the People's Bank of China (the “PBOC”) and State Administration of Foreign Exchange (“SAFE”) jointly released the Pilot Measures on Domestic Securities Investment by RMB Qualified Foreign Institutional Investors for Fund Management Companies and Securities Companies (the “Pilot Measures”), a move showing that after deliberation for more than two years, RQFII, another measure to accelerate the backflow of offshore RMB funds as well as to push forward the internationalization of RMB, has been formally launched, in which case offshore RMB funds are generally permitted to invest in domestic securities market. Thereafter, CSRC, the PBOC and SAFE respectively promulgated its own implementing rules (i.e., the Implementing Rules for the Pilot Measures on Domestic Securities Investment by RMB Qualified Foreign Institutional Investors for Fund Management Companies and Securities Companies (the “CSRC Implementing Rules”), Circular of the State Administration of Foreign Exchange on the Relevant Issues Regarding the Pilot Measures on Domestic Securities Investment by RMB Qualified Foreign Institutional Investors for Fund Management Companies and Securities Companies (the “SAFE Circular”) and Circular of the People's Bank of China on the Relevant Issues Regarding the Pilot Measures on Domestic Securities Investment by RMB Qualified Foreign Institutional Investors for Fund Management Companies and Securities Companies (the “PBOC Circular”, together with the CSRC Implementing Rules and the SAFE Circular, collectively, the “Supporting Regulations”), which specified the relevant issues of the Pilot Measures.
