The China Securities Regulatory Commission (the CSRC) published the Rules on the Content and Formats of Fund
Management Companies’ Specific Asset Management Contracts with Multiple Clients (the “Fund Management
Rules”) on August 4, 2009. The Fund Management Rules require that asset management contracts be executed
among asset owners, asset managers and asset trustees between while the fund management companies handle
specific asset management business for multiple clients. The parties should specify all the issues with significant
impact on the rights and responsibilities of the parties in the asset managements contract, no matter whether it
is required by the Fund Management Rules.


According to the Fund Management Rules, the asset management contract is composed of 24 sections, covering
the representations and warranties, the initial selling of shares under the asset management plans, filing of asset
management plans for records, participation in and withdrawal from asset management plans, investments
under asset management plans, fee and taxation of asset management plans, etc.


As to the initial selling of shares under the asset management plan, the asset management contracts must
specify the following:

  • The period and manner of initial sale and offerees. The initial sale period may not exceed one month from
    the date of distribution of shares under the asset management plans;
  • The subscription and holding limits on shares under the asset management plans. The subscription in the
    initial sale period may not be lower RMB 1 million;
  • Subscription fees.