(Promulgated by China Securities Regulatory Commission on April 29th, 20 1 1, revised according to the Decision of China Securities Regulatory Commission on Amending the Provisions on the Investment Scope of Securities Self-operated Business of Securities Companies and Related Matters on October 6th, 201).
Article 1 These Provisions are formulated in accordance with the Regulation on the Supervision and Administration of Securities Companies in order to clarify the investment scope of securities proprietary business of securities companies and related matters.
Article 2 Securities companies engaged in securities proprietary business may buy and sell the securities listed in the List of Securities Proprietary Investment Varieties of Securities Companies attached to these Provisions.
Article 3 A securities company may entrust other securities companies or fund management companies with securities asset management business qualification, specific customer asset management business qualification or qualified domestic institutional investor qualification to conduct securities investment management.
If a securities company invests its own funds in government bonds, investment-grade corporate bonds, money market funds, central bank bills and other securities with low risk and strong liquidity recognized by China Securities Regulatory Commission (hereinafter referred to as China Securities Regulatory Commission), or entrusts other securities companies or fund management companies to conduct securities investment management, and the total investment scale does not exceed 80% of its net capital, it is not necessary to obtain the qualification of securities proprietary business.
Article 4 A securities company may set up subsidiaries to invest in financial products other than the List of Securities Self-operated Varieties of Securities Companies.
A securities company that establishes a subsidiary mentioned in the preceding paragraph shall have the qualification of self-operated securities business, and shall, in accordance with the provisions of Article 13 of the Regulations on the Supervision and Administration of Securities Companies, report to the dispatched office of China Securities Regulatory Commission for approval in advance.
A securities company may not provide financing or guarantee for its subsidiaries as stipulated in the first paragraph of this article.
Article 5 Securities companies with securities proprietary business qualifications may engage in the trading of financial derivatives.
Securities companies that do not have the qualification of securities proprietary business can only engage in financial derivatives trading for the purpose of hedging risks.
Article 6 The calculation of net capital and risk capital reserve of securities companies involved in these Provisions shall conform to the provisions of the China Securities Regulatory Commission.
Article 7 These Provisions shall come into force on June 1 day, 2065. Where the relevant provisions previously promulgated by the CSRC are inconsistent with these Provisions, these Provisions shall prevail.
Attachment: List of Securities Self-investment Varieties of Securities Companies