The funds in the personal securities account are kept by a third party and managed by a designated bank. Even if the securities company goes bankrupt, it will not affect the personal funds.
Third-party depository is the depository of funds transferred by banks to securities companies, which can prevent securities companies from misappropriating customers' funds. Even if the securities company goes bankrupt, the relevant funds will not be affected. In the past, when there was no third-party depository, the relevant funds were sometimes misappropriated by securities companies.
As the purchased shares will be registered in the shareholders' accounts under their names in electronic names, China Securities Clearing Co., Ltd. is the service organization of all securities shareholders' cards in China, and the shareholders' information will be kept in its system. If a securities company goes bankrupt, it will be related to trading business.