Citic Ultimatum to the end of September due to the issue of Huaxia Equity

Since Citic Securities has been slow to resolve the Chinese fund stake, this week, the CSRC ultimatum, urging two companies to resolve the equity issue within the stipulated time limit.　　Citic Securities Monday Evening Notice that received the SFC Fund Supervision Department "on further supervision and regulation of Huaxia fund management company's shares of the letter," the letter urged the company in September 30 before the completion of the Chinese fund equity transfer work. According to the SFC's notice, if the relevant shares before September 30 can not be regulated, the SFC Fund Supervision Department will, as appropriate, the Huaxia fund and companies to take further regulatory measures. It is noteworthy that this is the third time this year, the regulator to the company issued a transfer of rights and supervision documents. January 16 this year, April 8, Citic Securities two times issued a notice, received the Securities and Futures Commission of the Ministry of the Fund "on the supervision and regulation of Huaxia Fund letter."　　Until today, the question of equity remains unresolved. As the boss of the domestic fund industry, Huaxia fund in the course of the transfer of equity has also paid a heavy price, because under the regulations of the SFC, has been suspended from January 1, 2010 onwards, the review of Huaxia fund investment in the territory of the Public fund new product applications and new specific customer asset management contracts for the record,　　Until the equity issue is resolved. According to the data, Citic Securities currently holds 100% of the equity of Huaxia Fund company, and under the relevant regulations of the CSRC, the maximum contribution ratio of the main shareholder of the Fund is not more than 49% of the total capital contribution, and the proportion of Chinese shareholder contribution of Sino-Foreign Joint fund management company is not limited. Citic Securities said that the company is in accordance with regulatory requirements to actively promote the Chinese fund equity regulation work, the company's board of Trustees has been considered through the transfer of China Fund stock options. The company intends to hold the Chinese fund 51% of the equity in the property rights trading institutions through the listing method transfer, the transfer is completed, the company will still hold a 49% stake in Huaxia fund.