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.

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

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

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

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.

According to the estimates of China Merchants Securities, deducted from the shares, CSFC will hold another 38 million shares of Pudong Development Bank in the second quarter and raise its shares to almost 600 million shares, which account for 2.77 of the bank shares.

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.

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

You call them stock, or stock options, derivatives, mortgage backed securities.

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.

(3) Where a securities firm does not report its security self operation accounts or portfolio accounts of its clients to a security exchange for file according to provisions

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 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.

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

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

The securities broker should have securities working qualification.

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

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 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.

The types of securities that can be lent to the customer by the securities firm and can be bought with the funds lent to the customer by the securities firm, the types and coefficient of the securities that can be used as deposit, the time limit for securities lending and borrowing, the minimum guarantee maintenance ratio and the time limit for making up the difference shall be determined by the stock exchange.

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

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

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.

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 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.

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

The European Association of Securities Dealers does not support such differentials but allows flexibility, noting that if they cannot be avoided they should at least be indicated by a different share class (EASD Principles, Recommendation II.2).

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.

Securities can be used as the deposit.

3 Trade securities or maneuver securities market with insider information

The deposit given by the customer, all the securities that have been purchased through securities lending and borrowing, and all the funds from the sales of securities are collaterals to the securities firm, and shall be deposit to the customer securities guarantee account or the customer funds guarantee account and credited to the customer s credit granting account.

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.

(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 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 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 82 Where a securities firm conducts trading between its security self operation accounts and portfolio management accounts, or between different portfolio management accounts, and has no sufficient evidences to prove effective separation of these accounts is realized according to laws, it shall be punished according to the provisions prescribed in Article 220 of the Securities Law of the People s Republic of China.

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.

Securities brokers shall not handle securities subscription or trading for customers.

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 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 33 A securities firm shall not entrust other agency or individual to attract customer, or hold customer service or product sales that are violating regulations.

Article 96 The securities registration and clearing agency hereof refers to the securities registration and clearing agency prescribed in Article 155 of the Securities Law of the People s Republic of China.

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.

1 Customers purchase of securities, settlement of securities trading or customers withdrawal