Foreigners interested in setting up an open-ended investment fund in China can ask for legal support in this matter and can talk to our lawyers in China. Please do not hesitate to contact our advisors at: www.lawyerschina.net

1. Set up an Open-Ended Investment
Fund in China
A presentation brought to you by LawyersChina.net
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2. Establishing an Open-
Ended Investment Fund
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The Chinese legislation referring to the
registration of investment funds is
similar with the ones available in other
regions of the world, such as Europe or
United States of America.
Investors can set up here open-ended
or closed-ended funds, which provide
different regulations for the amount of
shares that can be issued through the
respective fund.

3. Open-Ended Funds in
China >>
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An open-ended fund in China is
incorporated for securities investment
purposes.
The investment tool can be registered
in China under the rules of the
Securities Investment Fund Law, on
which our Chinese attorneys may offer
more details.

4. >> Open-Ended Funds in
China
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The main entities involved in the
registration of an open-ended fund in
China are the following:
• the investor, who both invests in the
fund and benefits directly from the
respective investment;
• the manager of the fund, generally
represented by a management
company that invests the funds of
the vehicle;
• the custodian, that is represented by a
recognized bank in China.

5. The Value of the Shares
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The total volume of the shares issued by
the investors is not fixed, unlike the
situation of a closed-ended fund.
Moreover, the value of the shares can
be modified if the investors request so.
They can increase the volume of
shares and redeem the current value
and the procedure can be managed at
any time.

6. Dividends in an Open-
Ended Fund in China >>
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The shareholders of a company
registered in China or those who are
associated in an investment fund are
entitled to receive dividends.
In the case of an open-ended fund, the
shareholders may receive dividends in
two forms.

7. >> Dividends in an Open-
Ended Fund in China
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The dividends received by an investor in
China for an open-ended fund are:
• cash dividends;
• fund share dividends.
As a general rule, most of the investors
receive money under the first option. You
may talk to our Chinese lawyers for the
legal aspects of dividends.

8. How to Register an
Investment Fund in China
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The following documents are necessary at
the time you want to register an
investment fund in China:
 the business license;
 the list of shareholders;
 the articles of association or the
partnership agreement;
 information about the management
of the fund.

9. Legal Services in China
If you want to create an open-ended
investment fund in China, you can talk to
our lawyers in China. Moreover, legal
support is offered in matters like:
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 opening a WFOE in China;
 company litigation;
 company liquidation;
 debt collection;
 visa matters.
Please contact our law firm in China
and solicit our legal assistance.

10. Thank you for your
attention!
For more information please contact us at:
office@lawyerschina.net
www.lawyerschina.net
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