Key practical points:
• Distinguishes public funds (offered to the general public) from private funds (for qualified investors).
• Imposes fiduciary duties of loyalty and care on the fund manager, who must act for unit-holders.
• Fund assets are legally independent of the manager's and custodian's assets and cannot be used to repay their debts.
• A custodian (usually a bank) safekeeps assets and supervises the manager's conduct.
• Requires periodic disclosure of net asset value and financial reports to investors.
Securities Investment Fund Law · Yalla China
中华人民共和国证券投资基金法 / Securities Investment Fund Law
Enacted: 2003-10-28 ✅ Effective: 2013-06-01
📝 Overview
A law governing public and private securities investment funds and the duties of fund managers and custodians toward unit-holders. It aims to protect investors and to keep fund assets separate from the manager's own assets.
This is general information only, not legal advice. For your specific case, consult a licensed lawyer.
📜 The law text / key provisions
💬 Practical reading
💬 This is a general reading/opinion for orientation — not the official legal text nor legal advice.
Before buying units in a Chinese fund, confirm it is registered and licensed, and read the prospectus and risk policy. Fund assets are legally shielded from the manager's creditors, but market risk still falls on you. General orientation, not legal advice.
📎 Official source
npc.gov.cn
🕒 Updated: 16 March 2026