The Shanghai Head Office of the People's Bank of China (“PBC”), all branches and operations offices of the PBC, and all central sub-branches of the PBC in capital cities of provinces (autonomous regions) and sub-provincial cities; and China Development Bank, all policy banks, state-owned commercial banks, and joint-stock commercial banks, and Postal Savings Bank of China:
For the purpose of further regulating the overseas securities investment (hereinafter referred to as the “overseas investment”) activities of RMB qualified domestic institutional investors (hereinafter referred to as “RQDIIs”), in accordance with the relevant provisions of the Notice of the People's Bank of China on Matters concerning the Overseas Securities Investment of RMB Qualified Domestic Institutional Investors (No. 331 [2014], PBC), you are hereby notified of matters such as the macro-prudential regulation of the overseas investment of RQDIIs and relevant information submission requirements as follows:
I . “Overseas investment of RQDIIs” means the investment made by domestic financial institutions as permitted by the financial regulatory authority of the State Council in the RMB-denominated products on overseas financial markets with their own RMB funds or RMB funds raised from domestic institutions and individuals (excluding overseas utilization of banks' owned funds).
II . RQDIIs making overseas investment shall not remit RMB funds abroad for purchase of foreign exchange.
III . A RQDII making overseas investment shall, as required, submit to the Shanghai Head Office of the PBC the basic information on the RQDII and the information on the custodian bank, sources and scale of funds, investment plans, outward and inward remittance of funds, and overseas positions, among others.
IV . The PBC shall, taking into account the status of cross-border flow of funds, offshore RMB market liquidity, development of RMB products, and other factors, conduct the macro-prudential regulation of the overseas investment of RQDIIs.
V . Domestic custodian banks shall, according to the relevant provisions and business development principles, strengthen the examination of the veracity and compliance of the overseas investment of RQDIIs, ensure that the relevant business is conducted in accordance with laws and regulations, and as required by Document No. 331 [2014] of the PBC, submit the relevant information to the PBC through the RMB Cross-Border Payment and Receipt Information Management System.
VI . The Shanghai Head Office of the PBC shall, according to this Notice, develop the corresponding detailed implementation rules and information statements, effectively conduct the information monitoring of RQDIIs, strengthen the interim and ex post supervision and administration of RQDIIs, and submit on a regular basis to the PBC the required information on investments made by RQDIIs.
VII . The PBC shall take regulatory measures, such as circulating a notification and ordering corrective action to be taken during a specified period, against RQDIIs and their domestic custodian banks that violate the relevant provisions on business transaction and information submission.
VI . This Notice shall come into force on the date of issuance.
The General Administration Department of the People's Bank of China
April 20，2018
