I. Key Responsibilities of the Custodian Bank
Determine the bank branch for opening the Fund’s custodian account, open a fund-raising account, custodian fund account, or other necessary accounts for the Fund, and keep relevant account materials.
Be responsible for the safekeeping of the Fund’s funds, account management, fund liquidation, and other matters; ensure the independence and security of the Fund’s assets; and conduct dynamic supervision of investment activities.
In accordance with the Fund Agreement (Articles of Association), resolutions of the partners’ (shareholders’) meeting, etc., review the fund transfer instructions and the attached documents, and execute valid fund transfers.
Provide convenient channels for fund transactions, third-party custody, bank-securities transfers, and fund supervision services; offer real-time notifications of fund changes, account balance inquiries, and functions for querying and downloading fund transaction details; reconcile account records with the Fund Manager within 5 working days at the beginning of each month, and provide online banking receipts, account statements, etc.
Supervise the use of the custodian Fund’s funds, issue quarterly, semi-annual, and annual custody reports that meet the required format in accordance with the Fund’s requirements; submit the quarterly custody report of the Fund’s funds to the Fund Manager and the Venture Capital Group within 10 days after the end of each quarter; and submit the annual custody report of the Fund’s funds for the previous year within 1 month after the end of each fiscal year.
Arrange dedicated personnel (with relatively fixed roles) to handle matters related to the Fund, provide professional and efficient services, and respond to and resolve various needs arising from the Fund’s operation within a specified time limit.
Update the Fund’s operation data in a timely manner; in accordance with requirements, the custodian bank account must be directly connected to the investment management system of Jiangsu Provincial Strategic Emerging Industry Master Fund Co., Ltd. and the central database system of the Venture Capital Group; synchronize the fund transaction records of the Fund’s relevant business in a timely manner to ensure the timely synchronization of data.
On the basis of ensuring security and overall liquidity, when the Fund and the Manager conduct inquiries about product quotes from banks for the management of idle interim funds, the custodian bank must provide product quotes in accordance with requirements. When the Fund allocates products based on the inquiry results of the interim fund management plan, the custodian bank must not obstruct the Fund from purchasing fixed-income financial assets with good security and liquidity (such as bank deposits, national bonds, and local government bonds) from banks other than the custodian bank for any reason (funds shall be returned directly to the custodian bank via the original route after the product matures).
Under the conditions of complying with regulatory rules and the bank’s credit policies, give priority to providing financing support for the investment projects of the master and sub-funds.
Conduct dynamic supervision of the use, recovery, and management of funds; in case of abnormal fund flows, the custodian bank shall promptly clarify the situation, remind the Fund Manager of non-compliance risks, and report to the Fund Manager and the investors in a timely manner.
Cooperate with supervision work, and shall not refuse, obstruct, or delay such work, nor provide false Fund management materials or information.
Other responsibilities stipulated in the Fund Custody Agreement and other requirements under relevant laws and regulations.
II. Eligibility Requirements for Custodian Bank Applicants
Be a legal person or branch with the capacity to bear civil liabilities, have a good business reputation and a sound financial and accounting system, and have a good record of paying taxes and social security funds in accordance with the law.
Be one of the domestic systemically important banks (or their branches) recently identified by the People’s Bank of China and the National Financial Regulatory Administration.
Be a commercial bank established for more than 5 years, with its headquarters in Nanjing or having a branch in Nanjing, and have the ability to provide localized services.
Hold fund custody qualifications approved by the securities regulatory authority under the State Council (China Securities Regulatory Commission) and the National Financial Regulatory Administration.
Have a dedicated fund custody department and personnel, be able to assign dedicated staff to be responsible for relevant custody business, and be able to handle problems and propose solutions in a timely manner.
Have the necessary equipment, systems, and professional technical capabilities to perform the custody agreement, and have sound systems for fund custody, audit supervision, and risk control.
Have custody experience in government investment funds, private equity investment funds, or other fund assets.
Be able to provide a capital-preserving fund management plan for the idle interim funds in the Fund’s custodian account.
Have no major negligence or adverse records of penalties imposed by administrative authorities or judicial organs in fund custody business in the past 3 years.
For commercial banks with a branch in Nanjing, the application for this selection shall be submitted by the branch located in Nanjing.
Joint applications in the form of a consortium shall not be accepted.
Have no other acts prohibited by laws, regulations, etc., from participating in this selection.
III. Selection Process
The Fund Manager, together with the Venture Capital Group, will jointly issue the selection announcement and select the custodian bank through public procedures.
Banks that intend to apply and meet the above eligibility requirements shall submit application materials to the Fund Manager.
The Fund Manager will conduct an eligibility review based on the application materials submitted by the participating banks and organize experts to conduct the evaluation.
After the selection result is determined, it will be announced on the official media platforms of the Fund Manager and the Venture Capital Group.
The Fund Manager will conduct business negotiations with the selected custodian bank on the custody agreement to ensure the implementation of the relevant custody requirements.
The Fund Manager will organize a Fund partners’ meeting to confirm the custodian bank and sign the custody agreement.
IV. Application Method
Applicants shall conduct the application for the Fund’s custodian bank in accordance with the requirements of this announcement and prepare detailed application materials as specified in the appendix.
Participating banks shall be responsible for the authenticity of the materials provided and shall commit to the effective implementation of the service plan and other key elements provided. If a participating bank is found to have submitted false materials, data, or supporting documents, its eligibility for this selection will be cancelled.
Requirements for Material Submission
(1) Deadline for submitting the application letter: 16:00 (Beijing Time) on March 7, 2025; late submissions will not be accepted. (Please collect the scoring criteria for the custodian bank selection when submitting the application letter.)
(2) Deadline for submitting application materials: 16:00 (Beijing Time) on March 12, 2025; late submissions will not be accepted.
(3) Submission Methods:
Application letter: Submit the paper version on-site to the Fund Management Department of Nanjing Innovation Investment Group Co., Ltd. (41st Floor, Building 4, Financial City, No. 248 Lushan Road, Jianye District, Nanjing, Jiangsu Province). Contact person: Wang Jingjing; Tel: 025-86596527.
Application materials: Send the sealed electronic version (with official stamps) to the email address: wangjj@njicg.com; submit 5 sealed paper copies of the application materials on-site to the Fund Management Department of Nanjing Innovation Investment Group Co., Ltd. (41st Floor, Building 4, Financial City, No. 248 Lushan Road, Jianye District, Nanjing, Jiangsu Province). Contact person: Wang Jingjing; Tel: 025-86596527.
V. Other Matters
The custodian bank shall strictly implement the relevant commitments. During the custody period, the Fund Manager shall regularly evaluate the custodian bank’s performance of obligations and custody services. If the custodian bank fails to perform the responsibilities specified in Section I of this plan or seriously violates the custody agreement, the Fund and the Manager shall have the right to unilaterally terminate the custody agreement, reselect the Fund’s custodian bank, and shall not bear any liability for breach of contract.
If the custodian bank violates the commitment matters, service requirements, or contractual agreements, the Fund and the Manager will take measures based on specific circumstances, including but not limited to deducting 5-10 points in the next selection, including it in the negative bank list and no longer selecting it, pursuing liability for breach of contract, and reporting the relevant situation to the financial regulatory authorities.
The bank branch for opening the Fund’s account shall be consistent with the district where the Fund is registered (Jiangbei New Area, Nanjing).
Nanjing Innovation Investment Group Co., Ltd.
March 5, 2025
Source: Venture Capital Group
Review: Xue Yao
Release: You Yi
