A securities company is a legal person enterprise specializing in securities trading. Divided into securities management companies and securities registration companies. In a narrow sense, a securities company refers to a securities business company, which refers to a specialized institution that has obtained the business license issued by the relevant administrative department for industry and commerce with the approval of the competent authority and engaged in securities business. With the membership of the stock exchange, you can underwrite the issuance of securities, conduct proprietary trading or act as an agent for proprietary trading. Ordinary investors should invest in securities through securities firms. Most of them are state-controlled enterprises, and the donated assets must comply with the relevant regulations of the state-owned assets management department; Most of them are unlisted companies with limited share circulation and no market price, but they have listing plans, which can meet the relevant regulations of listed companies. Therefore, stock options and employee stock ownership are more suitable for Chinese securities companies.
The State Council securities regulatory body shall formulate risk control indicators such as net capital, net capital debt ratio, net capital to net assets ratio, net capital to self-operation, underwriting, asset management and other business scale ratio, debt to net assets ratio, and current asset debt ratio. A securities company shall withdraw the trading risk reserve from the annual after-tax profit to make up for the securities trading losses. The specific extraction ratio shall be stipulated by the the State Council Securities Regulatory Authority. The State Council securities regulatory authority may, when it deems it necessary, entrust an accounting firm and an asset appraisal institution to audit or evaluate the financial status, internal control status and asset value of a securities company. The main responsibility of securities companies in the reorganization and listing of enterprises is to design and plan the stock listing of reorganized enterprises. The main work includes: participating in the design and formulation of enterprise restructuring plan, providing listing guidance for restructured enterprises that intend to issue shares, drafting, summarizing and submitting all listing application materials, organizing stock underwriting of listed enterprises, and undertaking the organization and coordination of listing.