Securities companies in China are limited liability companies or joint-stock companies with independent legal personality.
A securities company refers to a limited liability company or a joint stock limited company established in accordance with the Company Law of People's Republic of China (PRC) and the Securities Law of People's Republic of China (PRC), and approved by the securities regulatory authority of the State Council, which specializes in securities business and has independent legal personality.
Judging from the functions of securities companies, it can be divided into:
1. A securities broker is a securities brokerage company. Securities institutions that act as agents to buy and sell securities accept the entrustment of investors to buy and sell securities on their behalf and charge a certain commission, such as Soochow Securities Suzhou Sales Department and jianghai securities Brokerage Company.
2. Brokers are comprehensive securities companies. In addition to the authority of the securities brokerage company, you can also buy and sell securities yourself. They are well-funded and can directly enter the exchange to buy and sell stocks for themselves. Such as Guotai Junan Securities;
3. Securities underwriters are institutions that help issuers sell securities in the form of underwriting or consignment. In fact, many securities companies operate these three businesses at the same time. According to the current practice in various countries, all member companies of a stock exchange can conduct proprietary trading in the trading market, but few securities companies specialize in proprietary trading.
In addition, some certified innovative securities companies also have the authority to create warrants, such as CITIC Securities.
legal ground
People's Republic of China (PRC) Securities Law
Article 2 This Law shall apply to the issuance and trading of stocks, corporate bonds, depositary receipts and other securities legally recognized by the State Council within the territory of People's Republic of China (PRC). Matters not covered by this Law shall be governed by the Company Law of People's Republic of China (PRC) and other laws and administrative regulations.
This Law shall apply to the listing and trading of government bonds and securities investment fund shares; Where other laws and administrative regulations provide otherwise, such provisions shall prevail.
Measures for the administration of issuance and trading of asset-backed securities and asset management products shall be formulated by the State Council in accordance with the principles of this Law.
Securities issuance and trading activities inside and outside People's Republic of China (PRC), which disturb the market order in People's Republic of China (PRC) and damage the legitimate rights and interests of domestic investors, shall be handled in accordance with the relevant provisions of this Law, and legal responsibilities shall be investigated.