Holding Restrictions – Investment Funds – China


Restrictions on customers

For the Southbound funds under the Mutual Recognition of Funds (MRF), only eligible Hong Kong institutional investors can invest in the funds. Clearstream Banking customers will need to be recognised as licensed distributors in Hong Kong, and register for the 3-digit CSISC agent code. Please refer to "Guide to Application for the CSISC Agent Code" below  which will be only visible in the Attachments section below if logged in as a Premium User.

Restrictions on currency

At Clearstream Banking, the official ISO currency code “CNY” must be used in all transactions regardless of where the transaction takes place, even though there are several codes for the same Chinese Yuan, such as the CNH in Hong Kong, CNS in Singapore, RMB as a general abbreviation for “Renminbi”. Customers are advised that instructions placed in CNH, CNS and RMB will not be able to settle.

Restrictions on settlement

There is no general restriction on settlement for Southbound funds through CBL. However, certain funds may impose specific settlement/transfer restrictions. Customers must refer to and abide by the restrictions (if any) contained in the fund prospectus before entering into transactions.


The information contained in the Holding Restrictions is based on the legal opinion obtained by CBL that was issued on 17 August 2016. CBL believes the information to be correct as of that date but disclaims any responsibility as to the accuracy and completeness of the information after that date. In the case of discrepancy between the information provided by CBL and the local laws and regulations, the latter shall prevail. The Holding Restrictions do not constitute legal advice and customers should seek advice from independent professional counsel.

Customers are responsible for ensuring compliance with the holding restrictions and agree to indemnify and hold harmless, CBL, for any loss, expense, liability, damage or claims, whether direct or indirect, against or incurred by CBL arising out of or resulting from such non-compliance.