General Commitments 

• Representative offices of foreign securities institutions may become Special Members of all Chinese stock exchanges.

• China has agreed to issue licenses solely on the basis of prudential criteria, without any   economic needs test or quantitative limits on licenses.

• Foreign securities institutions may establish joint ventures, with a maximum foreign investment of 33 percent, to conduct domestic securities investment fund management business. By December 11, 2004, foreign investment may be increased to 49 percent. 

• By December 11, 2004, foreign securities institutions may establish joint ventures, with a maximum foreign investment of 33 percent, to engage in (without a Chinese intermediary) the underwriting of A shares, the underwriting and trading of B and H shares and government and corporate debts, and the launching of new funds.

• Managers, executives, and specialists of a representative office, branch, or subsidiary in China, temporarily moving as intra-corporate transferees, will be permitted an initial stay of three years.

• Managers, executives, and specialists of foreign-invested enterprises in China will be granted a long-term stay permit as stipulated in the terms of contracts concerned or an initial stay of three years, whichever is shorter.

• Service salespersons who are not based in China, and who meet certain other conditions set out in China’s services schedule, are limited to a 90-day stay.

Fund Management

• China reserves the right to place market access restrictions on the cross border supply of fund management services.

• Foreign securities institutions may engage directly (i.e., without a Chinese intermediary) in the underwriting and trading of B shares. 

• The provision of securities services outside of China is not subject to market access restrictions and is accorded national treatment

• The conditions of ownership, operation, and scope of activities for an existing foreign service supplier, as set out in the supplier’s contract or shareholders’ agreement or in a  license establishing or authorizing the supplier’s operation or supply of services, will not be made more restrictive than they were on December 11, 2001.