1.Product Overview
QFI (Qualified Foreign Institutional Investors) system is an important move adopted by the Chinese Government to attract foreign investment by limited liberalization of its capital market under the circumstances of foreign exchange control and incompletely free convertibility of RMB in China. At of the end of 2002, the issue of Provisional Administrative Measures on Domestic Securities Investments of Qualified Foreign Institutional Investors (QFI) signified the formal introduction of QFI system into China. According to the "Measures for the Administration of Domestic Securities and Futures Investments by Qualified Foreign Institutional Investors and RMB Qualified Foreign Institutional Investors," [Order No. 176], jointly issued by the China Securities Regulatory Commission (CSRC), the People's Bank of China, and the State Administration of Foreign Exchange on September 25, 2020, and implemented on November 1, 2020, the original QFI and RQFI systems were merged under the unified term "QF1." This term refers to foreign institutional investors who are approved by the CSRC to use overseas funds to invest in domestic securities and futures markets. The measures encourage the use of RMB-denominated funds from abroad for domestic securities and futures investments.
To apply for Qualified Foreign Investor qualification, foreign institutions shall complete the application form online via the CSRC's official website and submit the necessary documents through a domestic custodian to the CSRC.

2.Target Clients
According to the Administrative Measures on Domestic Securities Investments of Qualified Foreign Institutional Investors (QFI), ICBC can provide QFI custody services for:
1.Overseas fund management companies;
2.Overseas insurance companies;
3.Overseas securities companies;
4.Overseas commercial banks;
5.Overseas pension funds, charity funds, endowment funds, trust companies, government investment management companies and other institutional investors;
6.Other qualified overseas institutions which meet regulatory requirements.

3.Scope of Services
Basic services
1.Apply for QFI qualification, investment quota, and open foreign exchange accounts, special RMB accounts, and securities accounts, including proxy voting.
2.Provide asset custody services for QFI Clients.
3.Complete securities delivery and clearing for domestic investments of QFI Clients.
4.Record QFI investment activities in account books.
5.Valuate QFI investment assets according to international accounting standards.
6.Provide information on QFI securities holdings and financial market news.
7.Supervise shareholding ratios according to QFI portfolios and regulatory requirements.
8.Convert currencies and handle foreign exchange settlement and sales.
9.Properly keep records of investments, fund inflows/outflows, and other materials.
10.Provide other services as required by regulators.
Value-added services
1.Estimate and evaluate performance for QFI portfolios.
2.Provide QFI investment risk warnings and risk assessment reports.
3.Offer multiple cash management instruments for QFI Clients.
4.Upload and download electronic banking data.
5.Declare and pay taxes for QFI Clients as an agent.
6.Provide reports in customized types and formats.
7.Offer other customized services requested by QFI Clients.

4.Advantages
ICBC was one of the earliest banks providing QFI custody services in China. Due to its familiarity with China’s securities market policies and QFI system, ICBC help a large number of Clients successfully expand their business in China capital market.
As the largest custodian bank in China, ICBC has maintained its leading position in the market for many years in terms of market share of asset custody business.
It is also the most professional custodian bank in China, with an advanced custody service system independently developed by it. The system has obtained ISAE3402 authentication (formerly known as SAS70), indicating that ICBC’s custody services have met international standards. ICBC, the most powerful domestic commercial bank, owns a fast clearing network, abundant RMB funds and strong A share settlement capability. ICBC can provide QFI Clients with efficient and comprehensive service support.

5.Contact Information
For assistance with related services, please contact the Global Asset Custody Division of the Asset Custody Department at the Industrial and Commercial Bank of China (ICBC):
Contact Person: Siqi Lei
Tel: +86 10 6610 4709
E-mail: siq1.lei@icbc.com.cn