Legal basis: Article 118 of the Securities Law of People's Republic of China (PRC) to establish a securities company shall meet the following conditions and be approved by the securities regulatory authority of the State Council: (1) Having a company's articles of association that meet the requirements of laws and administrative regulations; (2) The major shareholders and actual controllers of the company are in good financial condition, with good credit records, and have no record of major violations of laws and regulations in the last three years; (3) Having the registered capital of the company that meets the requirements of this Law; (4) Directors, supervisors, senior managers and employees meet the requirements as prescribed in this Law; (5) Having a sound risk management and internal control system; (6) Having qualified business premises, business facilities and information technology systems; (seven) other conditions stipulated by laws and administrative regulations and approved by the the State Council securities regulatory authority. Without the approval of the State Council securities regulatory authority, no unit or individual may engage in securities business activities in the name of a securities company.