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.

1 Illegally buying securities issued by shareholder of the securities firm or other issuer with major relationship to securities firm against regulation

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

Securities account opened by the securities firm for securities assets management customer should be submitted to stock exchange for filing within 3 trading days.

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.

Article 5 By obeying national regulations, securities firms can issue, trade and sell securities financial products.

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.

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.

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.

Self run securities accounts of the securities firm should be submitted to the stock exchange for filing within 3 trading days of account opening.

Article 1 This Regulation is formulated with the purpose of strengthening supervision and administration of securities firms, standardize their behaviors, prevent their risks, protect legal rights and interests of customers, and promote healthy development of the securities industry according to the Company Law of People s Republic of China (hereinafter referred to as the Company Law) and the Securities Law of People s Republic of China (hereinafter referred to as the Securities Law).

Article 76 A securities firm shall undertake real time monitoring on trading behaviors of its self operation accounts and portfolio management accounts.

Article 28 When the securities firm is entrusted by securities registration settlement agency to open securities account for customers, it should audit name and identity authenticity declared by customers according to management rule of securities account.

The ECB has already attempted to ease credit conditions by purchasing high quality asset backed securities. It has bought securities backed by cash flows from private sector mortgages, so called covered bonds, and it has floated the idea of buying corporate bonds and multilateral securities issued by the European Investment Bank.

In 1997, the United States Treasury began to issue inflation linked securities.

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

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.

While the securities regulatory agency under the State Council approving setting up application of securities firm and its branch, it should consider the needs of development as well as fair competition of the securities market.

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

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 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.

(5) Securities service agencies provided services for a securities firm.

Where the listed company does not meet the requirements for public issuance of securities before the material assets reorganization, or the material assets reorganization results in the change of the actual controller of the listed company, the listed company can only apply for public issuance of new shares or company bonds at least one complete fiscal year from the completion of the material assets reorganization.

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.

The legal responsibility of his behavior within authorized scope of the securities firm should be taken by the securities firm and the legal responsibility of any behavior outside authorized scope should be taken by securities brokers.

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.

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.

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

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.

Creditor's right transferred to a securities firm from its creditor during business operation of the securities firm is not subject to the provision of item 1 of this article.

Article 6 The securities regulatory agency under the State Council should perform supervision and administration roles and responsibilities of securities firm within the law.

The non monetary property amount shall not exceed 30 of registered capital of securities firms.

Securities brokers can only accept entrustment of one securities firm for customer attracting and service activities.

(2) Where any shareholder and actual holder of a securities firm force, incite, assist or accept the securities firm to provide financing or warranty with assets of stock brokerage clients or stock asset management clients

Article 23 The securities firm should set up responsible person for regulatory compliance to audit, supervise or check legal and regulatory compliance of management behavior of securities firm.

Article 19 The securities firm can set up independent board directors, who shall not take positions outside of board of the securities firm or have such relationship with the securities firm that hinders his independent and objective judgment.

(3) Where any securities broker accepts entrustments of many securities firms at the same time and undertakes activities including client solicitation and client service

Inside the customer securities guarantee account and customer funds guarantee account opened in the name of the securities firm, a separate credit granting account shall be opened for each customer.

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.

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

(5) To take over the securities firm temporally and undertake an overall inspection

Article 8 Setting up a securities firm requires meeting the conditions prescribed in the Company Law, the Securities Law as well as this Regulation, and approval from securities regulatory agency under the State Council.

South Africa was the only country in sub Saharan Africa to issue on international bond or equity markets in 1997.

Article 22 If a securities firm sets up an agency that performs business management rights of the securities firm, it should clearly states it name, constitution, roles, responsibilities and rule of procedure in the company regulation.