Measures for the Administration of Representative Offices of Foreign Stock Exchange
Measures for the Administration of Representative Offices of Foreign Stock Exchange
Measures for the Administration of Representative Offices of Foreign Stock Exchange
Order of China Securities Regulatory Commission [2007] No. 44
May 20, 2007
Measures for the Administration of Representative Offices of Foreign Stock Exchange have been deliberated upon and approved at China Securities Regulatory Commission. They are hereby announced and shall come into force as of July 1, 2007.
Chairman of China Securities Regulatory Commission: Shang Fulin
Annex: Rules on Administration of Representative Offices of Foreign Stock Exchange
Chapter I General Provisions
Article 1 These rules are formulated in accordance with the Securities Laws of the People's Republic of China and relevant regulations with a view to standardizing the establishment and business of representative offices of foreign stock exchange.
Article 2 Foreign stock exchanges hereof referred to in these rules are those stock exchanges, Securities Dealers Automated Quotation System and Electronic Trading System and Market incorporated outside the territory of the People's Republic of China.
Representative offices of foreign stock exchanges (hereinafter referred to as "representative offices")hereof referred to in these rules are permanent representative offices established by foreign stock exchange within Chinese territory for the purpose of conducting such non-operational activities as liaison service, presentation,and market research etc. A Chief Representative hereof referred to in these rules is the principal responsible person of a representative office.
Article 3 Representative offices shall abide by Chinese laws and regulations and relevant regulations made by China Securities Regulatory Commission (hereinafter referred to as "CSRC") and their legitimate rights and interests be protected by Chinese laws.
Article 4 CSRC is authorized by law to perform approval and regulatory responsibilities over the representative offices based on strict adherence to regulatory principles.
Chapter II Application and Establishment
Article 5 A foreign stock exchange applying to establish a representative office (hereinafter referred to as "the applicant") shall satisfy the following requirements:
1. The home country or region of the applicant should have sound legal and regulatory system of financial supervision and management.
2. The securities regulator of the home country or region of the applicant has signed Memorandum of Understanding with CSRC and has maintained an efficient regulatory and co-operative relationship.
3. The applicant is sanctioned officially or approved by its financial regulator of the home country or region.
4. The applicant should be over 20 years from its establishment, with a stable and standard performance and a sound financial status.
5. Other stringent requirements stipulated by CSRC.
Article 6 The applicant can only establish one representative office and shall submit the following documents on application:
1. A letter of application addressed to the Chairman of CSRC and signed by its Chairman of the Board of Directors(board chairperson) or General Manager;
2. A letter of permit or other documents issued by a recognized and competent financial regulatory authority of its home country or territory allowing it to set up a representative office in China;
3.
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