Two regulations have been introduced for asset management service for clients of fund management companies: Trial Measures for Fund Management Companies’ Asset Management Services for Designated Clients and Guidelines on the Content and Format of Asset Management Contracts of Fund Management Companies for Single Clients (revised in 2011).
Qualification requirements for fund management companies applying to conduct asset management business have been relaxed. Requirements for minimum net assets and asset under management (“AUM”), as well as fund business track record, have been removed.
The revised rules also introduce certain restrictions on the portfolios of asset management schemes. For example, the market value of stocks of a listed company held by a single scheme must not exceed 20% of the net value of the scheme. At the same time, certain restrictions, such as same day cross-trades between funds, have been removed.