(4) Deposit banks, designated commercial banks, asset management agencies, security exchanges, securities registration and clearing agencies of a securities firm

3 Having professionals, technical conditions, funds and securities required for carrying out securities lending and borrowing business

A domestic brokerage analyst said that the Orient Securities in Hong Kong did not enjoy a good foundation. Only its capital management business is its strength. It has many inherent problems compared with Bank of China International and CITIC Securities, etc.

(2) expenses on purchasing commercial insurances, securities, stock equities or collections and so on

Article 50 A securities firm that carries out securities lending and borrowing business shall sign a securities lending and borrowing contract with the customer, and shall open a customer securities guarantee account with the securities registration and settlement organs, and a customer funds guarantee account with the designated commercial bank in the name of the securities firm in accordance with the provisions of the securities regulatory agency under the State Council.

The securities business license should be written with business scope of such securities firm or its domestic branch.

Without securities business license, the securities firm and its domestic branch shall not run securities business.

The securities broker should have securities working qualification.

Where the securities service organ adopts the professional opinions of other securities service organs or personnel in the opinions it gives, it shall still conduct due diligence, prudently examine the content of the professional opinions adopted, and assume responsibility for the conclusion formed using the professional opinions of the other securities service organs or personnel.

Experts pointed out that with the return of the securities market to flatness, many brokers sagged this year in results. But the detailed situation of the listed companies is dependent on the detailed development of the corporate business and cannot be generalized.

Article 30 Before the securities firm signs securities dealing entrustment, securities assets management, capital and securities financing contracts with customers, it should appoint specialist to introduce business rule and contract content to customers and let customer sign and confirm on risk disclosure letter.

Article 32 A securities firm should establish information inquiring system to ensure customers inquiring entrustment record, trading record, securities and balance during business hours of the securities firm, as well as other information such as name, practice license of the business operator and securities broker of the securities firm, certificate number of securities broker, etc.

Article 42 When a securities firm is engaged in self run business, it should use self run securities accounts with its true name.

(2) Where any securities broker who engaging in businesses does not present his her certificate of securities broker to his her client

Article 57 Where a securities firm carries out securities brokerage business, its customer s trading settlement funds shall be deposit in the designated commercial bank, and shall be managed separately in the name of each customer.

Article 41 A securities firm engaged in securities business for its own account is limited to trading of legally issued stocks, bonds, warrants, securities investment funds or other securities recognized by the securities regulatory agency under the State Council.

Article 20 If a securities firm has two or more kinds of securities brokerage business, securities assets management business, financing with capital and securities, securities underwriting, securities sponsors, its board should set up remuneration and nomination committee, auditing committee and risk control committee to perform rights prescribed in company regulation.

Securities brokers should work within authorized scope of the securities firm and show securities broker certificates to customer.

True, major commercial banks, like Citibank and Bank of America, tottered, but they were not at risk because of their securities underwriting for corporate clients or their securities trading divisions, but because of how they (mis)handled mortgage securities. Mortgage lending, however, is a long standing activity for commercial and savings banks, mostly unaffected by Glass Steagall or its repeal.

Section 2 Securities Brokerage Business

Section 3 Securities Self Service Business

If the securities firm closes all securities business, disbands, goes bankruptcy or revokes domestic branch, it should publicize in newspaper appointed by the securities regulatory agency under the State Council and submit securities business license to the securities regulatory agency under the State Council for deregistration based on regulation.

A securities firm mentioned in item 1 of this article refers to an unincorporated entity with business operation under the securities firm such as branch company and securities business outlet.

The securities firm should sign entrustment contracts with securities brokers who accept such entrustment, issue securities broker certificate, define authorized scope of securities broker and supervise working behavior of securities broker.

(4) Where the investment scopes or investment proportions of the security self operation business and portfolio management business of a securities firm are not conformed to provisions

Article 58 A securities firm that carries out securities assets management business shall hand the customer trust assets over to the custody of the designated bank as stipulated in Item 4 of Article 57 of this Regulation or other assets custodian organs recognized by the securities regulatory agency under the State Council.

Article 43 The securities firm shall not have the following behavior while being engaged in self run securities business

The business activity index of road transport, security, real estate and other industries continued to be lower than the critical point, and the total business volume also decreased.

The securities regulatory agency under the State Council can enquire the bank accounts of a securities firm and enterprises controlled or actually controlled by the securities firm with approval of a person responsible of the securities regulatory agency under the State Council with a view to make a thorough investigation of business and financial status of the securities firm.

Article 37 If a securities firm is engaged in securities brokerage business, it should audit whether capital and securities in customer s account are sufficient or not.

Article 31 If a securities firm is engaged in such businesses as securities assets management and capital and securities financing, it should develop reconciliation statement and send it to customers on monthly basis.

Article 56 Where a securities firm carries out securities lending and borrowing but does not have sufficient funds or securities, it can borrow from the securities financial companies.

After a securities firm acquiring business license for the securities or domestic branch issued or changed by the corporate registration agency, it should apply to the securities regulatory agency under the State Council for issuing or changing license for securities business.

Article 26 If a securities firm and its domestic branch are engaged in securities business prescribed in Article 125 of the Securities Law, they should follow the Securities Law and provisions of this Regulation.

Article 46 A securities firm engaged in securities assets management business shall not have the following act

Article 38 If a securities firm is engaged in securities brokerage business, it can entrust staff outside of the securities firm as securities broker, engaging in attracting and providing service for customers as agent.

Section 4 Securities Assets Management Business

Received Post Grado in Política Fiscal from Fundación Getúlio Vargas and Título Professional de Economista from Universidad Particular Ricardo Palma.

Article 94 Business scopes, qualified conditions of overseas shareholders and their contributive proportions of a foreign invested securities firm shall be formulated by the securities regulatory agency of the State Council and reported to the State Council for approval.

Article 44 If a securities firm is engaged in self run securities business, its risk controlling indicators such as ratio of total securities value and company net capital, ratio of value of one type of securities and net corporate capital, and ratio of quantity of one type of securities and total issuing quantity of this type of securities should comply with prescription of the securities regulatory agency under the State Council.

Article 80 Where a securities firm entices its clients to conduct unnecessary security trading or uses assets of its clients to take unnecessary security trading in its dealing with portfolio management business, it shall be punished according to the provisions prescribed in Article 210 of the Securities Law of the People s Republic of China.

Article 64 The financial report and risk control indicator report in the annual report of the securities firm and the other special reports required by the securities regulatory agency under the State Council shall be audited by the accounting firm with qualification for securities and futures business.

Article 29 The securities firm that is engaged in securities assets management business, capital and securities financing business, securities related finance product sales should get knowledge of identity, property, income status, securities investment experience and risk preference of customers according to prescribed procedure, and record as well as keep the information in written or electronic form.

Article 48 Securities lending and borrowing referred to in this article means that in the securities trading at the stock exchange or other securities trading places that have been approved by the State Council, securities firms lend capital or securities to customers for them to buy or sell securities based on the corresponding collaterals provided by the customers.

The EU s Financial Services Action Plan, launched in 1999 and implemented in stages, focused mainly on securities markets. It boosted competition and innovation for professional traders and encouraged institutional market players, in particular, to trade across EU borders.