On August 16, 2016, the China Securities Investment Fund Industry Association (hereinafter referred to as "the China Fund Industry Association") issued a "Legal Opinion" to Guangdong Legal Shengbang Law Firm (hereinafter referred to as "Legal Shengbang, this Firm"), a private equity institution - XX Enterprise Asset Management Co., Ltd. in Shunde District, Foshan City, for registration as a private equity fund manager, indicating the status of the legal opinion: approved.

The "Legal Opinion" that has been approved this time includes the "Legal Opinion" for the registration of private fund managers applying for licenses and the "Special Legal Opinion" for major changes in private fund managers.

On February 5, 2016, the China Fund Industry Association issued the "Announcement on Further Regulating the Registration of Private Fund Managers" (hereinafter referred to as the "February 5 Announcement"). Starting from the date of this announcement, new or registered private fund managers who have undergone significant changes must submit a legal opinion issued by a Chinese law firm through the private fund registration and filing system. The legal opinion shall provide concluding opinions on the registration application materials, industrial and commercial registration status, professional operation status, equity structure, actual controllers, related parties and branch offices, basic operating facilities and conditions, risk management and internal control systems, outsourcing situation, legal compliance situation, and qualifications of senior executives of the application institution.

The issuance of a "Legal Opinion" for the registration of fund managers for private equity institutions is a new business in the field of securities private equity, with high requirements and strong professionalism. Legal Shengbang, as one of the first batch of national excellent law firms with securities industry qualifications approved by the China Securities Regulatory Commission and the Ministry of Justice in 1993, has attached great importance to it since the China Fund Industry Association issued the "February 5th Announcement" and promptly organized a professional team of lawyers to study and study seriously, deeply understanding the relevant requirements of the "February 5th Announcement".

The special legal affairs for the registration of the private fund manager of XX Enterprise Asset Management Co., Ltd. in Shunde District, Foshan City, undertaken by Huang Changgan's partner/lawyer team, include issuing a "Legal Opinion" for the registration of the private fund manager and a "Special Legal Opinion" for major changes.

According to the relevant requirements of the "February 5th Announcement", professional team lawyers have conducted professional communication, guidance, and standardization on private equity institutions, and provided professional legal opinions on the rectification and standardization of private equity institutions' business scope, registered capital, risk management, internal control, and other aspects. The final form of the "Legal Opinion" for the registration of private equity fund managers and the "Special Legal Opinion" for major changes has been submitted to the China Fund Industry Association, After receiving feedback, reissuance, re feedback, and supplementary legal opinions, it was approved by the China Fund Industry Association on August 16, 2016.

The handling lawyers for the registration and issuance of "Legal Opinion", "Supplementary Legal Opinion", and "Special Legal Opinion" for major changes to the private fund managers mentioned above are lawyers Huang Changgan and Huang Yifeng from our firm.

Legal Shengbang Huang Changgan's partner/lawyer private equity professional team, in addition to the "Legal Opinion" approved by the China Fund Industry Association, there are also several private equity institutions that are receiving guidance, rectification, and standardization from our firm and the handling lawyers.

Since the announcement on February 5th, the approval rate for private fund managers to register their legal opinions has been relatively low. The "Legal Opinion" and "Special Legal Opinion" issued by Legal Shengbang for private equity institutions have been reviewed and approved by the China Fund Industry Association, indicating that the professional knowledge and ability of Legal Shengbang's private equity fund team have been recognized by relevant private equity institutions.