Provisions on the Investment Scope of Self-operating Securities Business of Securities Companies and Relevant Issues (Revised in 2012)
Provisions on the Investment Scope of Self-operating Securities Business of Securities Companies and Relevant Issues (Revised in 2012)
Provisions on the Investment Scope of Self-operating Securities Business of Securities Companies and Relevant Issues (Revised in 2012)
Announcement of the China Securities Regulatory Commission [2012] No.35
November 16, 2012
(Promulgated by China Securities Regulatory Commission on April 29, 2011 and revised according to Decision on Revising the Provisions on the Investment Scope of Self-operating Securities Business of Securities Companies and Relevant Issues made by China Securities Regulatory Commission on November 16, 2012)
Article 1 These Provisions are formulated in accordance with the Regulations on the Supervision and Administration of Securities Companies for the purpose of clarifying the investment scope of self-operating securities business of securities companies and relevant issues.
Article 2 When engaging the self-operating securities business, a securities company may purchase and sell securities specified in the List of Investment Varieties of self-operating Securities Business of Securities Companies attached hereto.
Article 3 Securities companies may entrust other securities companies or fund management companies which are eligible for securities assets management, assets management for specific customers or accredited domestic institutional investors to manage the securities investment.
Where securities companies invest their self-owned funds in the national debts, investment grade company bonds, money market funds, central bank bills that are issued publicly pursuant to laws and recognized as relatively low-risk and high-fluidity securities by the China Securities Regulatory Commission (hereinafter referred to as the "CSRC"), or entrust other securities companies or fund management companies to manage the securities investment while the total amount of investment does not exceed 80% of its net capital, such securities companies are not subject to qualification for self-operating securities business.
Article 4 Securities companies may establish subsidiary companies that are engaged in the investment of financial products other than those listed in the List of Investment Varieties of self-operating Securities Business of Securities Companies.
Securities companies establishing subsidiary companies as defined in the preceding Paragraph shall have the qualification for self-operating securities business and shall obtain prior approval from the local office of the CSRC located at the place where the company is domiciled in accordance with the provisions concerning changing the important clauses of articles of association of the company in Article 13 of Regulations on the Supervision and Administration of Securities Companies.
Securities companies shall not provide financing or guarantee for any of its subsidiary companies established in accordance with the first Paragraph of this Article.
Article 5 Securities companies with the qualification for self-operating securities business may participate in trading of financial derivative products.
Securities companies without the qualification for self-operating securities business may participate in trading of financial derivative products only for the purpose of risk hedging.
Article 6 The calculation for the net capital and risk capital reserve of securities companies concerned with these Provisions shall comply with provisions issued by the CRSC.
Article 7 These Provisions have come into force as of June 1, 2011.
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