Regulations on the Supervision and Administration of Securities Companies (Revised in 2014)

Regulations on the Supervision and Administration of Securities Companies (Revised in 2014)

Order of the State Council of the People's Republic of China [2014] No. 653

July 29, 2014

(Promulgated according to the Order of the State Council of the People's Republic of China No. 522 on April 23, 2008, and revised in accordance with the Decision of the State Council on Revising Certain Administrative Regulations on July 29, 2014.)

Chapter I General Provisions

Article 1 With a view to strengthening the supervision and administration on securities companies, normalizing the behaviors of securities companies, preventing the risks of securities companies, protecting the legitimate rights and interests of clients, promoting the healthy development of the securities industry, in accordance with the Company Law of the People's Republic of China (hereinafter referred to as the Company Law) and the Securities Law of the People's Republic of China (hereinafter referred to as the Securities Law), the Regulations on the Supervision and Administration of Securities Companies is hereby formulated.

Article 2 Securities companies shall abide by laws, administrative regulations and the regulations of the securities regulatory body under the State Council, operate the business prudently and perform the obligations of good faith to clients.

Article 3 Shareholders of securities companies and persons actually controlling the companies shall not abuse their rights, impropriate the assets of the securities companies or the clients thereof, or damage the legitimate rights and interests of the securities companies or the clients.

Article 4 The state shall encourage securities companies to launch, in accordance with the laws and regulations, innovations in the modes of business operation, businesses or products, organizations, and the mechanisms of incentive and constraint.
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