It's a day of milestone for China's funds business. On June 1, 2004, China's Securities Investment Fund Law (hereinafter referred to as Fund Law), along with other ten financial and trade laws and regulations, takes effect. It will have far-reaching significance for China's capital market, analysts believe.

The law includes 12 chapters with 103 articles. Hot discussions were focused on whether it should be specially designed for fund and involve private placement, as well as how fund should be defined and structured, before the law was finally passed on October 28, 2003.

Sources from executives of China Securities Regulatory Commission, the industry's watchdog, released that relevant regulations are basically planned to be issued in batches starting from mid-June. The package to detail implementation of the law will include 6 regulations on the management of fund companies, fund operation, fund information disclosure, fund marketing, fund executives, and fund trusting bank. Other rules to be made public will deal with preparation and release of report on fund portfolio, annotations in statement of account, annual reports, and announcement of public offering.

The other 10 important laws and regulations governing the financial and trade sector in China to take effect on the same day are as follows: Interim Regulations on Insurance Assets Management Companies, Trial Guide on Risk Control of Insurance Capital, Anti-dumping Rules, Anti-subsidies Rules, Safeguard Measure Rules, Management Regulation on Foreign Investment in Commercial Sector, Management Regulation on Foundations, Management Regulation on Port Operation, Management Regulation on Foreign Investment in International Ocean Shipping, and Management Regulation on Legal Advisories for State-owned Enterprises.

By People's Daily Online