Foreign portfolio investment

(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

If a securities firm is engaged in securities assets management business, it should sign securities assets management contract with customers, defining investment scope, investment ratio, management period, management cost and so on.

The fund earns interest out of investment in securities.

39. Of the three forms of private capital flow (loans, FDI and portfolio equity), FDI and portfolio equity investments are more relevant in the present context of African economies.

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 45 A securities firm can be engaged in securities assets management business by accepting customer s entrustment or using customer s assets according to the Securities Law and this Regulation.

The situation as regards portfolio investments, however, was different.

(ii) Investments include securities acquired by the Organization to produce income.

Portfolio flows and foreign direct investment (FDI) posted the strongest growth, accounting for more than two thirds of total private inflows.

There are encouraging signs of growing investor interest in African securities portfolios.

(33) As regards investment yield, it is required to make disclosure of investment yield in current year and that in last year by securities category (like government securities and funds, etc.).

This settlement agreement on securities fraud charge released by the U.S. Securities and Exchange Commission (SEC) on Saturday would make investors relieved.

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 47 If a securities firm is engaged in collective investment by using assets of multiple customers or specially invests customer s assets into particular target products, it should comply with related prescription of the securities regulatory agency under the State Council and report to the securities regulatory agency under the State Council for approval.

The securities broker should have securities working qualification.

The assets custodian organs shall perform duties of safeguarding the customer s trust assets, handling the collection and payment of the funds and supervising the investment activities of the securities firm according to the provisions of the securities regulatory agency under the State Council and the securities assets management contract.

Lack of institutional structure and lack of capacity are obstacles to intra African FDI and portfolio investment.

(a) Different types of capital flows (foreign direct investment, portfolio investments, borrowing etc.) have very different degrees of beneficial effects.

27. There are three main categories of private resource flow loans, foreign direct investment (FDI), and portfolio equity investment.

The funds of an insurance company shall not be applied to the establishment of any entity to trade bonds or securities or investment in enterprises.

(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

(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

(e) The Service should reassess the requirements for additional investment officers, especially for North American securities, and or consider outsourcing a portion of the North American equity portfolio to outside discretionary investment managers (AS2001 95 1 22).

It was noted that improving the ratings of debt issuance to investment grade by securitization and other mechanisms could lead to opening the door to large global pools of institutional investment.

Article 61 The securities firm shall not provide financing or warranty to other people using the assets of the securities brokerage customers or securities assets management customers.

In this connection, the Committee was informed by the representative of the Secretary General for the investments of the Fund that the examination of portfolio management would be most appropriately carried out by an outside firm with demonstrated investment accounting expertise.

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.

For example, the Global Committee of Argentine Bondholders has considered the initiation of international investment arbitration, following the Argentine Government's decision not to reopen the debt exchange for investors who have not tendered their bonds.

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.

What are the likely implications of including portfolio investment under a BIT in terms of investment protection and, where applicable, in terms of admission of investment?

Article 34 While a securities firm is putting forward investment advice to customers, it shall not make decisive judgment on rising or dropping of securities price or market tendency.

(a) A significant number of large pension funds have investments in the following additional asset classes inflation protected securities, high yield bonds and alternative investments (e.g., hedge funds, commodities, forestry and private equities).

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 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.

This imported statement contains investment transactions with no security. These transactions will be ignored.

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

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.

(3) Where a securities firm, an asset management agency, a securities registration and clearing agency use trading settlement funds, trust funds and funds and securities in secured accounts of clients in violation of provisions

Following the flotation of the peso on 22 December, a lack of confidence on the part of portfolio investors precipitated large scale repatriation of their financial investments.

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.

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.

Article 51 A securities firm shall use its own funds or funds that have been raised according to the law when lending funds to the customer it shall use its own securities or securities whose right of disposal has been legally obtained by it when lending securities to the customer.