Risk Management System


The company has established multi-levels of compliance and risk management system


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The company exercises control in three stages, namely before-process, in-process and after-process


Before-process


Investment decision committee confirms the investment discretion of investment managers and informs the centralized trading room accordingly.


In-process


The centralized trading room shall exercise real-time monitoring on whether investment managers send out trade instructions that clearly violate either related regulations, or the internal system and discretion set by the company. Should any violation take place, it shall decline to execute trades and make necessary documentation. In the meantime, it would report to managers and investment directors who are looking after investment duties, and also inform personnel involved including investment managers and the Compliance and Risk Management Department.


After-process


The company’s Business Supporting Department exercises after-process monitoring on whether there is any violations or abnormal trading during clearing process. Should any violation take place, it would report to managers and investment directors who are looking after investment duties, and also inform personnel involved including investment managers and the Compliance and Risk Management Department to ensure investment ratios are maintained within the required level set by regulations and funds‘ contracts.


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