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.

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

(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

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

The designated commercial bank shall sign a customer trading settlement funds custody contract with the securities firm and its customer, setting forth matters such as the deposit and withdrawal, transfer and enquiries of the trading settlement funds, and shall open a general account of customer trading settlement funds for the securities firm according to the requirements of net amount settlement and delivery versus payment of securities trading.

The custody, issuance, distribution, clearing, negotiation, brokerage or management of securities

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.

After the listed company finishes the aforesaid public announcement and report, it can complete the securities registration formalities at the stock exchange and the securities registration and clearing company for the specified parties that have purchased the 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.

(5) Where an asset management agency and a securities registration and clearing agency does not report to the securities regulatory agency of the State Council when it finds trust funds and assets and securities in secured accounts of clients are used in violation of provisions.

The TBILLEQ functions returns the bond equivalent for a treasury bill. The maturity date must be after the settlement date but within 365 days.

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.

4 Disbandment reason and liquidation approach of the securities firm and

The decrease of transaction settlement fund balance in the securities market in July was smaller than that in June, while the net bank securities transfers stood at negative RMB 66.6 billion.

(4) Where an asset management agency and a securities registration and clearing agency approves and executes applications and instructions which use trust funds and assets and securities in secured accounts of clients in violation of provisions

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.

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.

(d) Inter bank payment systems, inter bank payment agreements or clearance and settlement systems relating to securities or other financial assets or instruments

(3) Failing to report to the securities regulatory agency of the State Council when it finds trading settlement funds of its clients are used illegally.

(2) Settlement by letter of credit

Article 92 Where a custody manner of trading clearing funds of clients of a securities firm is not in accordance with provisions prescribed in Article 57 hereof, the securities firm shall be ordered to made adjustment within certain period by the securities regulatory agency of 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

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.

The securities regulatory agency under the State Council shall compare and verify relevant data submitted by relevant organs on the customer s trading settlement funds, the trusted funds and the funds and securities in the customer s guarantee accounts to timely detect the illegal use of the funds or securities.

1 Having healthy corporate governance and effective internal control

Security

Securities...

The designated banks, assets custodian organs and the securities registration and settlement organs shall refuse application or instruction to use the customer s trading settlement funds, the trusted funds and the funds and securities in the customer s guarantee accounts which exceeds the scope stipulated by Articles 53, 54 and 60 of this Regulation

The securities broker should have securities working qualification.

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.

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.

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

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.

(11) Where a securities firm does not deposit or manage trading settlement funds, trust funds and funds and securities in secured accounts of clients according to provisions

The custody manner of trading clearing funds of clients of a securities firm shall meet requirements within 1 year since the implementation of provisions hereof.

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

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.

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

Delete security

Create security

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

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