On July 27, 2012, China Securities Regulatory Commission (“CSRC”) promulgated the Regulation of China Securities Regulatory Commission on the Implementation of the Measures for the Administration of Securities Investment Made in China by Qualified Foreign Institutional Investors (“QFII”) (the “Regulation”), aiming to amend the Notice of China Securities Regulatory Commission on the Implementation of the Measures for the Administration of Securities Investment Made in China by Qualified Foreign Institutional Investors (the “Notice”) issued on August 24, 2006. CSRC, People’s Bank of China and State Administration of Foreign Exchange jointly issued on August 24, 2006 the Measures for the Administration of Securities Investment Made in China by Qualified Foreign Institutional Investors (the “Measures”), amending the relevant rules regarding the QFII program for the first time since its initiation in 2002. The Regulation aims to further open up the capital market and attract more long term investment from abroad. More specifically, the Regulation would simplify the approval process for QFII, lower the requirements, loosen the restriction on opening securities trading accounts, expand the investable scope, facilitate the investment and operation, improve the supervision system of the investment by QFII, and ensure that relevant risks are under control.