Private Funds Allowed to Directly Open Accounts from March 25


China Securities Depository and Clearing Co., Ltd. (“CSDC”) recently released the Circular on Issues concerning the Opening of Accounts and Settlement for Private Investment Funds (the “Circular”). According to the Circular, commencing from March 25, 2014, private investment funds (“Private Funds”) can directly open accounts and enter into the market.

The Circular provides that the application for opening of accounts for an investment fund shall be filed by the fund manager. For an investment fund with an assets custodian, the application can also be filed by the assets custodian. For the establishment of each investment fund, the fund manager may apply for one securities account on each securities exchange. The Circular also clarifies the specific materials required for the application of the opening of securities accounts for an investment fund.


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