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Investor Presentaiton

Key Highlights of R-QFII New Rules SAFE announced the new R-QFII rules on September 5, 2016 ligh Simplified Quota Approval Mechanism • • • Basic Quota. R-QFII can make a filing with SAFE for a "basic investment quota" based on certain % of its total asset or AUM. For certain types of R-QFIIs such as SWFs, central banks and monetary authorities, the Basic Quota will not apply and they shall self-determine the intended investment quota through filing process. SAFE's approval is only required when the quota being applied for exceeds the Basic Quota. Type of R-QFII Basic Quota Calculation For R-QFII or its group company with majority of assets (or assets under management) outside of China USD 100 million in RMB equivalent + 0.2% of the average assets size in the latest three years - Existing QFII quota (in RMB) I Injection period removed and lock-up period improved 3 months lock-up period for all the R-QFIIs except open ended fund, commence from the date when accumulated principal injection reaches to RMB 100 million. For R-QFII or its group company with majority of assets (or assets under management) inside of China RMB 5 billion + 80% of the average assets size in the last fiscal year - Existing QFII quota (in RMB) Flexible cross-border remittance • • Daily injection or repatriation are allowed for all R-QFII product types. Re-injection of principal is now allowed for non-open-end fund within the investment quota. Foreign SWFs, Central Banks and international monetary authorities Determine the intended investment quota at its own discretion. 101 Citi® H
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