PRC Securities Law (Revised in 2014)
中华人民共和国证券法 (2014年修正)
A takeover offer of a listed company is no longer required to be submitted to the CSRC but be announced publicly only.
(Adopted at the 10th Session of the Standing Committee of the 12th National People's Congress on, and effective as of, August 31 2014.)
(第十二届全国人民代表大会常务委员会第十次会议于二零一四年八月三十一日通过施行。)
中华人民共和国主席令 (十二届第14号)
第一章 总 则
第一条 为了规范证券发行和交易行为，保护投资者的合法权益，维护社会经济秩序和社会公共利益，促进社会主义市场经济的发展，制定本法。
第二条 在中华人民共和国境内，股票、公司债券和国务院依法认定的其它证券的发行和交易，适用本法；本法未规定的，适用《中华人民共和国公司法》和其它法律、行政法规的规定。
政府债券、证券投资基金份额的上市交易，适用本法；其它法律、行政法规另有规定的，适用其规定。
证券衍生品种发行、交易的管理办法，由国务院依照本法的原则规定。
第三条 证券的发行、交易活动，必须实行公开、公平、公正的原则。
第四条 证券发行、交易活动的当事人具有平等的法律地位，应当遵守自愿、有偿、诚实信用的原则。
第五条 证券的发行、交易活动，必须遵守法律、行政法规；禁止欺诈、内幕交易和操纵证券市场的行为。
第六条 证券业和银行业、信托业、保险业实行分业经营、分业管理，证券公司与银行、信托、保险业务机构分别设立。国家另有规定的除外。
第七条 国务院证券监督管理机构依法对全国证券市场实行集中统一监督管理。
国务院证券监督管理机构根据需要可以设立派出机构，按照授权履行监督管理职责。
第八条 在国家对证券发行、交易活动实行集中统一监督管理的前提下，依法设立证券业协会，实行自律性管理。
第九条 国家审计机关依法对证券交易所、证券公司、证券登记结算机构、证券监督管理机构进行审计监督。
第二章 证券发行
第十条 公开发行证券，必须符合法律、行政法规规定的条件，并依法报经国务院证券监督管理机构或者国务院授权的部门核准；未经依法核准，任何单位和个人不得公开发行证券。
有下列情形之一的，为公开发行：
(一) 向不特定对象发行证券的；
(二) 向特定对象发行证券累计超过二百人的；
(三) 法律、行政法规规定的其它发行行为。
非公开发行证券，不得采用广告、公开劝诱和变相公开方式。
第十一条 发行人申请公开发行股票、可转换为股票的公司债券，依法采取承销方式的，或者公开发行法律、行政法规规定实行保荐制度的其它证券的，应当聘请具有保荐资格的机构担任保荐人。
保荐人应当遵守业务规则和行业规范，诚实守信，勤勉尽责，对发行人的申请文件和信息披露数据进行审慎核查，督导发行人规范运作。
保荐人的资格及其管理办法由国务院证券监督管理机构规定。
第十二条 设立股份有限公司公开发行股票，应当符合《中华人民共和国公司法》规定的条件和经国务院批准的国务院证券监督管理机构规定的其它条件，向国务院证券监督管理机构报送募股申请和下列文件：
(一) 公司章程；
(二) 发起人协议；
(三) 发起人姓名或者名称，发起人认购的股份数、出资种类及验资证明；
(四) 招股说明书；
(五) 代收股款银行的名称及地址；
(六) 承销机构名称及有关的协议。
依照本法规定聘请保荐人的，还应当报送保荐人出具的发行保荐书。
法律、行政法规规定设立公司必须报经批准的，还应当提交相应的批准文件。
第十三条 公司公开发行新股，应当符合下列条件：
(一) 具备健全且运行良好的组织机构；
(二) 具有持续盈利能力，财务状况良好；
(三) 最近三年财务会计文件无虚假记载，无其它重大违法行为；
(四) 经国务院批准的国务院证券监督管理机构规定的其它条件。
上市公司非公开发行新股，应当符合经国务院批准的国务院证券监督管理机构规定的条件，并报国务院证券监督管理机构核准。
第十四条 公司公开发行新股，应当向国务院证券监督管理机构报送募股申请和下列文件：
(一) 公司营业执照；
(二) 公司章程；
(三) 股东大会决议；
(四) 招股说明书；
(五) 财务会计报告；
(六) 代收股款银行的名称及地址；
(七) 承销机构名称及有关的协议。
依照本法规定聘请保荐人的，还应当报送保荐人出具的发行保荐书。
第十五条 公司对公开发行股票所募集资金，必须按照招股说明书所列资金用途使用。改变招股说明书所列资金用途，必须经股东大会作出决议。擅自改变用途而未作纠正的，或者未经股东大会认可的，不得公开发行新股。
第十六条 公开发行公司债券，应当符合下列条件：
(一) 股份有限公司的净资产不低于人民币三千万元，有限责任公司的净资产不低于人民币六千万元；
(二) 累计债券余额不超过公司净资产的百分之四十；
(三) 最近三年平均可分配利润足以支付公司债券一年的利息；
(四) 筹集的资金投向符合国家产业政策；
(五) 债券的利率不超过国务院限定的利率水平；
(六) 国务院规定的其它条件。
公开发行公司债券筹集的资金，必须用于核准的用途，不得用于弥补亏损和非生产性支出。
上市公司发行可转换为股票的公司债券，除应当符合第一款规定的条件外，还应当符合本法关于公开发行股票的条件，并报国务院证券监督管理机构核准。
第十七条 申请公开发行公司债券，应当向国务院授权的部门或者国务院证券监督管理机构报送下列文件：
(一) 公司营业执照；
(二) 公司章程；
(三) 公司债券募集办法；
(四) 资产评估报告和验资报告；
(五) 国务院授权的部门或者国务院证券监督管理机构规定的其它文件。
依照本法规定聘请保荐人的，还应当报送保荐人出具的发行保荐书。
第十八条 有下列情形之一的，不得再次公开发行公司债券：
(一) 前一次公开发行的公司债券尚未募足；
(二) 对已公开发行的公司债券或者其它债务有违约或者延迟支付本息的事实，仍处于继续状态；
(三) 违反本法规定，改变公开发行公司债券所募资金的用途。
第十九条 发行人依法申请核准发行证券所报送的申请文件的格式、报送方式，由依法负责核准的机构或者部门规定。
第二十条 发行人向国务院证券监督管理机构或者国务院授权的部门报送的证券发行申请文件，必须真实、准确、完整。
为证券发行出具有关文件的证券服务机构和人员，必须严格履行法定职责，保证其所出具文件的真实性、准确性和完整性。
第二十一条 发行人申请首次公开发行股票的，在提交申请文件后，应当按照国务院证券监督管理机构的规定预先披露有关申请文件。
第二十二条 国务院证券监督管理机构设发行审核委员会，依法审核股票发行申请。
发行审核委员会由国务院证券监督管理机构的专业人员和所聘请的该机构外的有关专家组成，以投票方式对股票发行申请进行表决，提出审核意见。
发行审核委员会的具体组成办法、组成人员任期、工作程序，由国务院证券监督管理机构规定。
第二十三条 国务院证券监督管理机构依照法定条件负责核准股票发行申请。核准程序应当公开，依法接受监督。
参与审核和核准股票发行申请的人员，不得与发行申请人有利害关系，不得直接或者间接接受发行申请人的馈赠，不得持有所核准的发行申请的股票，不得私下与发行申请人进行接触。
国务院授权的部门对公司债券发行申请的核准，参照前两款的规定执行。
第二十四条 国务院证券监督管理机构或者国务院授权的部门应当自受理证券发行申请文件之日起三个月内，依照法定条件和法定程序作出予以核准或者不予核准的决定，发行人根据要求补充、修改发行申请文件的时间不计算在内；不予核准的，应当说明理由。
第二十五条 证券发行申请经核准，发行人应当依照法律、行政法规的规定，在证券公开发行前，公告公开发行募集文件，并将该文件置备于指定场所供公众查阅。
发行证券的信息依法公开前，任何知情人不得公开或者泄露该信息。
发行人不得在公告公开发行募集文件前发行证券。
第二十六条 国务院证券监督管理机构或者国务院授权的部门对已作出的核准证券发行的决定，发现不符合法定条件或者法定程序，尚未发行证券的，应当予以撤销，停止发行。已经发行尚未上市的，撤销发行核准决定，发行人应当按照发行价并加算银行同期存款利息返还证券持有人；保荐人应当与发行人承担连带责任，但是能够证明自己没有过错的除外；发行人的控股股东、实际控制人有过错的，应当与发行人承担连带责任。
第二十七条 股票依法发行后，发行人经营与收益的变化，由发行人自行负责；由此变化引致的投资风险，由投资者自行负责。
第二十八条 发行人向不特定对象发行的证券，法律、行政法规规定应当由证券公司承销的，发行人应当同证券公司签订承销协议。证券承销业务采取代销或者包销方式。
证券代销是指证券公司代发行人发售证券，在承销期结束时，将未售出的证券全部退还给发行人的承销方式。
证券包销是指证券公司将发行人的证券按照协议全部购入或者在承销期结束时将售后剩余证券全部自行购入的承销方式。
第二十九条 公开发行证券的发行人有权依法自主选择承销的证券公司。证券公司不得以不正当竞争手段招揽证券承销业务。
第三十条 证券公司承销证券，应当同发行人签订代销或者包销协议，载明下列事项：
(一) 当事人的名称、住所及法定代表人姓名；
(二) 代销、包销证券的种类、数量、金额及发行价格；
(三) 代销、包销的期限及起止日期；
(四) 代销、包销的付款方式及日期；
(五) 代销、包销的费用和结算办法；
(六) 违约责任；
(七) 国务院证券监督管理机构规定的其它事项。
第三十一条 证券公司承销证券，应当对公开发行募集文件的真实性、准确性、完整性进行核查；发现有虚假记载、误导性陈述或者重大遗漏的，不得进行销售活动；已经销售的，必须立即停止销售活动，并采取纠正措施。
第三十二条 向不特定对象发行的证券票面总值超过人民币五千万元的，应当由承销团承销。承销团应当由主承销和参与承销的证券公司组成。
第三十三条 证券的代销、包销期限最长不得超过九十日。
证券公司在代销、包销期内，对所代销、包销的证券应当保证先行出售给认购人，证券公司不得为本公司预留所代销的证券和预先购入并留存所包销的证券。
第三十四条 股票发行采取溢价发行的，其发行价格由发行人与承销的证券公司协商确定。
第三十五条 股票发行采用代销方式，代销期限届满，向投资者出售的股票数量未达到拟公开发行股票数量百分之七十的，为发行失败。发行人应当按照发行价并加算银行同期存款利息返还股票认购人。
第三十六条 公开发行股票，代销、包销期限届满，发行人应当在规定的期限内将股票发行情况报国务院证券监督管理机构备案。
第三章 证券交易
第一节 一般规定
第三十七条 证券交易当事人依法买卖的证券，必须是依法发行并交付的证券。
非依法发行的证券，不得买卖。
第三十八条 依法发行的股票、公司债券及其它证券，法律对其转让期限有限制性规定的，在限定的期限内不得买卖。
第三十九条 依法公开发行的股票、公司债券及其它证券，应当在依法设立的证券交易所上市交易或者在国务院批准的其它证券交易场所转让。
第四十条 证券在证券交易所上市交易，应当采用公开的集中交易方式或者国务院证券监督管理机构批准的其它方式。
第四十一条 证券交易当事人买卖的证券可以采用纸面形式或者国务院证券监督管理机构规定的其它形式。
第四十二条 证券交易以现货和国务院规定的其它方式进行交易。
第四十三条 证券交易所、证券公司和证券登记结算机构的从业人员、证券监督管理机构的工作人员以及法律、行政法规禁止参与股票交易的其它人员，在任期或者法定限期内，不得直接或者以化名、借他人名义持有、买卖股票，也不得收受他人赠送的股票。
任何人在成为前款所列人员时，其原已持有的股票，必须依法转让。
第四十四条 证券交易所、证券公司、证券登记结算机构必须依法为客户开立的账户保密。
第四十五条 为股票发行出具审计报告、资产评估报告或者法律意见书等文件的证券服务机构和人员，在该股票承销期内和期满后六个月内，不得买卖该种股票。
除前款规定外，为上市公司出具审计报告、资产评估报告或者法律意见书等文件的证券服务机构和人员，自接受上市公司委托之日起至上述文件公开后五日内，不得买卖该种股票。
第四十六条 证券交易的收费必须合理，并公开收费项目、收费标准和收费办法。
证券交易的收费项目、收费标准和管理办法由国务院有关主管部门统一规定。
第四十七条 上市公司董事、监事、高级管理人员、持有上市公司股份百分之五以上的股东，将其持有的该公司的股票在买入后六个月内卖出，或者在卖出后六个月内又买入，由此所得收益归该公司所有，公司董事会应当收回其所得收益。但是，证券公司因包销购入售后剩余股票而持有百分之五以上股份的，卖出该股票不受六个月时间限制。
公司董事会不按照前款规定执行的，股东有权要求董事会在三十日内执行。公司董事会未在上述期限内执行的，股东有权为了公司的利益以自己的名义直接向人民法院提起诉讼。
公司董事会不按照第一款的规定执行的，负有责任的董事依法承担连带责任。
第二节 证券上市
第四十八条 申请证券上市交易，应当向证券交易所提出申请，由证券交易所依法审核同意，并由双方签订上市协议。
证券交易所根据国务院授权的部门的决定安排政府债券上市交易。
第四十九条 申请股票、可转换为股票的公司债券或者法律、行政法规规定实行保荐制度的其它证券上市交易，应当聘请具有保荐资格的机构担任保荐人。
本法第十一条第二款、第三款的规定适用于上市保荐人。
第五十条 股份有限公司申请股票上市，应当符合下列条件：
(一) 股票经国务院证券监督管理机构核准已公开发行；
(二) 公司股本总额不少于人民币三千万元；
(三) 公开发行的股份达到公司股份总数的百分之二十五以上；公司股本总额超过人民币四亿元的，公开发行股份的比例为百分之十以上；
(四) 公司最近三年无重大违法行为，财务会计报告无虚假记载。
证券交易所可以规定高于前款规定的上市条件，并报国务院证券监督管理机构批准。
第五十一条 国家鼓励符合产业政策并符合上市条件的公司股票上市交易。
第五十二条 申请股票上市交易，应当向证券交易所报送下列文件：
(一) 上市报告书；
(二) 申请股票上市的股东大会决议；
(三) 公司章程；
(四) 公司营业执照；
(五) 依法经会计师事务所审计的公司最近三年的财务会计报告；
(六) 法律意见书和上市保荐书；
(七) 最近一次的招股说明书；
(八) 证券交易所上市规则规定的其它文件。
第五十三条 股票上市交易申请经证券交易所审核同意后，签订上市协议的公司应当在规定的期限内公告股票上市的有关文件，并将该文件置备于指定场所供公众查阅。
第五十四条 签订上市协议的公司除公告前条规定的文件外，还应当公告下列事项：
(一) 股票获准在证券交易所交易的日期；
(二) 持有公司股份最多的前十名股东的名单和持股数额；
(三) 公司的实际控制人；
(四) 董事、监事、高级管理人员的姓名及其持有本公司股票和债券的情况。
第五十五条 上市公司有下列情形之一的，由证券交易所决定暂停其股票上市交易：
(一) 公司股本总额、股权分布等发生变化不再具备上市条件；
(二) 公司不按照规定公开其财务状况，或者对财务会计报告作虚假记载，可能误导投资者；
(三) 公司有重大违法行为；
(四) 公司最近三年连续亏损；
(五) 证券交易所上市规则规定的其它情形。
第五十六条 上市公司有下列情形之一的，由证券交易所决定终止其股票上市交易：
(一) 公司股本总额、股权分布等发生变化不再具备上市条件，在证券交易所规定的期限内仍不能达到上市条件；
(二) 公司不按照规定公开其财务状况，或者对财务会计报告作虚假记载，且拒绝纠正；
(三) 公司最近三年连续亏损，在其后一个年度内未能恢复盈利；
(四) 公司解散或者被宣告破产；
(五) 证券交易所上市规则规定的其它情形。
第五十七条 公司申请公司债券上市交易，应当符合下列条件：
(一) 公司债券的期限为一年以上；
(二) 公司债券实际发行额不少于人民币五千万元；
(三) 公司申请债券上市时仍符合法定的公司债券发行条件。
第五十八条 申请公司债券上市交易，应当向证券交易所报送下列文件：
(一) 上市报告书；
(二) 申请公司债券上市的董事会决议；
(三) 公司章程；
(四) 公司营业执照；
(五) 公司债券募集办法；
(六) 公司债券的实际发行数额；
(七) 证券交易所上市规则规定的其它文件。
申请可转换为股票的公司债券上市交易，还应当报送保荐人出具的上市保荐书。
第五十九条 公司债券上市交易申请经证券交易所审核同意后，签订上市协议的公司应当在规定的期限内公告公司债券上市文件及有关文件，并将其申请文件置备于指定场所供公众查阅。
第六十条 公司债券上市交易后，公司有下列情形之一的，由证券交易所决定暂停其公司债券上市交易：
(一) 公司有重大违法行为；
(二) 公司情况发生重大变化不符合公司债券上市条件；
(三) 发行公司债券所募集的资金不按照核准的用途使用；
(四) 未按照公司债券募集办法履行义务；
(五) 公司最近二年连续亏损。
第六十一条 公司有前条第(一)项、第(四)项所列情形之一经查实后果严重的，或者有前条第(二)项、第(三)项、第(五)项所列情形之一，在限期内未能消除的，由证券交易所决定终止其公司债券上市交易。
公司解散或者被宣告破产的，由证券交易所终止其公司债券上市交易。
第六十二条 对证券交易所作出的不予上市、暂停上市、终止上市决定不服的，可以向证券交易所设立的复核机构申请复核。
第三节 持续信息公开
第六十三条 发行人、上市公司依法披露的信息，必须真实、准确、完整，不得有虚假记载、误导性陈述或者重大遗漏。
第六十四条 经国务院证券监督管理机构核准依法公开发行股票，或者经国务院授权的部门核准依法公开发行公司债券，应当公告招股说明书、公司债券募集办法。依法公开发行新股或者公司债券的，还应当公告财务会计报告。
第六十五条 上市公司和公司债券上市交易的公司，应当在每一会计年度的上半年结束之日起二个月内，向国务院证券监督管理机构和证券交易所报送记载以下内容的中期报告，并予公告：
(一) 公司财务会计报告和经营情况；
(二) 涉及公司的重大诉讼事项；
(三) 已发行的股票、公司债券变动情况；
(四) 提交股东大会审议的重要事项；
(五) 国务院证券监督管理机构规定的其它事项。
第六十六条 上市公司和公司债券上市交易的公司，应当在每一会计年度结束之日起四个月内，向国务院证券监督管理机构和证券交易所报送记载以下内容的年度报告，并予公告：
(一) 公司概况；
(二) 公司财务会计报告和经营情况；
(三) 董事、监事、高级管理人员简介及其持股情况；
(四) 已发行的股票、公司债券情况，包括持有公司股份最多的前十名股东的名单和持股数额；
(五) 公司的实际控制人；
(六) 国务院证券监督管理机构规定的其它事项。
第六十七条 发生可能对上市公司股票交易价格产生较大影响的重大事件，投资者尚未得知时，上市公司应当立即将有关该重大事件的情况向国务院证券监督管理机构和证券交易所报送临时报告，并予公告，说明事件的起因、目前的状态和可能产生的法律后果。
下列情况为前款所称重大事件：
(一) 公司的经营方针和经营范围的重大变化；
(二) 公司的重大投资行为和重大的购置财产的决定；
(三) 公司订立重要合同，可能对公司的资产、负债、权益和经营成果产生重要影响；
(四) 公司发生重大债务和未能清偿到期重大债务的违约情况；
(五) 公司发生重大亏损或者重大损失；
(六) 公司生产经营的外部条件发生的重大变化；
(七) 公司的董事、三分之一以上监事或者经理发生变动；
(八) 持有公司百分之五以上股份的股东或者实际控制人，其持有股份或者控制公司的情况发生较大变化；
(九) 公司减资、合并、分立、解散及申请破产的决定；
(十) 涉及公司的重大诉讼，股东大会、董事会决议被依法撤销或者宣告无效；
(十一) 公司涉嫌犯罪被司法机关立案调查，公司董事、监事、高级管理人员涉嫌犯罪被司法机关采取强制措施；
(十二) 国务院证券监督管理机构规定的其它事项。
第六十八条 上市公司董事、高级管理人员应当对公司定期报告签署书面确认意见。
上市公司监事会应当对董事会编制的公司定期报告进行审核并提出书面审核意见。
上市公司董事、监事、高级管理人员应当保证上市公司所披露的信息真实、准确、完整。
第六十九条 发行人、上市公司公告的招股说明书、公司债券募集办法、财务会计报告、上市报告文件、年度报告、中期报告、临时报告以及其它信息披露数据，有虚假记载、误导性陈述或者重大遗漏，致使投资者在证券交易中遭受损失的，发行人、上市公司应当承担赔偿责任；发行人、上市公司的董事、监事、高级管理人员和其它直接责任人员以及保荐人、承销的证券公司，应当与发行人、上市公司承担连带赔偿责任，但是能够证明自己没有过错的除外；发行人、上市公司的控股股东、实际控制人有过错的，应当与发行人、上市公司承担连带赔偿责任。
第七十条 依法必须披露的信息，应当在国务院证券监督管理机构指定的媒体发布，同时将其置备于公司住所、证券交易所，供社会公众查阅。
第七十一条 国务院证券监督管理机构对上市公司年度报告、中期报告、临时报告以及公告的情况进行监督，对上市公司分派或者配售新股的情况进行监督，对上市公司控股股东和信息披露义务人的行为进行监督。
证券监督管理机构、证券交易所、保荐人、承销的证券公司及有关人员，对公司依照法律、行政法规规定必须作出的公告，在公告前不得泄露其内容。
第七十二条 证券交易所决定暂停或者终止证券上市交易的，应当及时公告，并报国务院证券监督管理机构备案。
第四节 禁止的交易行为
第七十三条 禁止证券交易内幕信息的知情人和非法获取内幕信息的人利用内幕信息从事证券交易活动。
第七十四条 证券交易内幕信息的知情人包括：
(一) 发行人的董事、监事、高级管理人员；
(二) 持有公司百分之五以上股份的股东及其董事、监事、高级管理人员，公司的实际控制人及其董事、监事、高级管理人员；
(三) 发行人控股的公司及其董事、监事、高级管理人员；
(四) 由于所任公司职务可以获取公司有关内幕信息的人员；
(五) 证券监督管理机构工作人员以及由于法定职责对证券的发行、交易进行管理的其它人员；
(六) 保荐人、承销的证券公司、证券交易所、证券登记结算机构、证券服务机构的有关人员；
(七) 国务院证券监督管理机构规定的其它人。
第七十五条 证券交易活动中，涉及公司的经营、财务或者对该公司证券的市场价格有重大影响的尚未公开的信息，为内幕信息。
下列信息皆属内幕信息：
(一) 本法第六十七条第二款所列重大事件；
(二) 公司分配股利或者增资的计划；
(三) 公司股权结构的重大变化；
(四) 公司债务担保的重大变更；
(五) 公司营业用主要资产的抵押、出售或者报废一次超过该资产的百分之三十；
(六) 公司的董事、监事、高级管理人员的行为可能依法承担重大损害赔偿责任；
(七) 上市公司收购的有关方案；
(八) 国务院证券监督管理机构认定的对证券交易价格有显著影响的其它重要信息。
第七十六条 证券交易内幕信息的知情人和非法获取内幕信息的人，在内幕信息公开前，不得买卖该公司的证券，或者泄露该信息，或者建议他人买卖该证券。
持有或者通过协议、其它安排与他人共同持有公司百分之五以上股份的自然人、法人、其它组织收购上市公司的股份，本法另有规定的，适用其规定。
内幕交易行为给投资者造成损失的，行为人应当依法承担赔偿责任。
第七十七条 禁止任何人以下列手段操纵证券市场：
(一) 单独或者通过合谋，集中资金优势、持股优势或者利用信息优势联合或者连续买卖，操纵证券交易价格或者证券交易量；
(二) 与他人串通，以事先约定的时间、价格和方式相互进行证券交易，影响证券交易价格或者证券交易量；
(三) 在自己实际控制的账户之间进行证券交易，影响证券交易价格或者证券交易量；
(四) 以其它手段操纵证券市场。
操纵证券市场行为给投资者造成损失的，行为人应当依法承担赔偿责任。
第七十八条 禁止国家工作人员、传播媒介从业人员和有关人员编造、传播虚假信息，扰乱证券市场。
禁止证券交易所、证券公司、证券登记结算机构、证券服务机构及其从业人员，证券业协会、证券监督管理机构及其工作人员，在证券交易活动中作出虚假陈述或者信息误导。
各种传播媒介传播证券市场信息必须真实、客观，禁止误导。
第七十九条 禁止证券公司及其从业人员从事下列损害客户利益的欺诈行为：
(一) 违背客户的委托为其买卖证券；
(二) 不在规定时间内向客户提供交易的书面确认文件；
(三) 挪用客户所委托买卖的证券或者客户账户上的资金；
(四) 未经客户的委托，擅自为客户买卖证券，或者假借客户的名义买卖证券；
(五) 为牟取佣金收入，诱使客户进行不必要的证券买卖；
(六) 利用传播媒介或者通过其它方式提供、传播虚假或者误导投资者的信息；
(七) 其它违背客户真实意思表示，损害客户利益的行为。
欺诈客户行为给客户造成损失的，行为人应当依法承担赔偿责任。
第八十条 禁止法人非法利用他人账户从事证券交易；禁止法人出借自己或者他人的证券账户。
第八十一条 依法拓宽资金入市渠道，禁止资金违规流入股市。
第八十二条 禁止任何人挪用公款买卖证券。
第八十三条 国有企业和国有资产控股的企业买卖上市交易的股票，必须遵守国家有关规定。
第八十四条 证券交易所、证券公司、证券登记结算机构、证券服务机构及其从业人员对证券交易中发现的禁止的交易行为，应当及时向证券监督管理机构报告。
第四章 上市公司的收购
第八十五条 投资者可以采取要约收购、协议收购及其它合法方式收购上市公司。
第八十六条 通过证券交易所的证券交易，投资者持有或者通过协议、其它安排与他人共同持有一个上市公司已发行的股份达到百分之五时，应当在该事实发生之日起三日内，向国务院证券监督管理机构、证券交易所作出书面报告，通知该上市公司，并予公告；在上述期限内，不得再行买卖该上市公司的股票。
投资者持有或者通过协议、其它安排与他人共同持有一个上市公司已发行的股份达到百分之五后，其所持该上市公司已发行的股份比例每增加或者减少百分之五，应当依照前款规定进行报告和公告。在报告期限内和作出报告、公告后二日内，不得再行买卖该上市公司的股票。
第八十七条 依照前条规定所作的书面报告和公告，应当包括下列内容：
(一) 持股人的名称、住所；
(二) 持有的股票的名称、数额；
(三) 持股达到法定比例或者持股增减变化达到法定比例的日期。
第八十八条 通过证券交易所的证券交易，投资者持有或者通过协议、其它安排与他人共同持有一个上市公司已发行的股份达到百分之三十时，继续进行收购的，应当依法向该上市公司所有股东发出收购上市公司全部或者部分股份的要约。
收购上市公司部分股份的收购要约应当约定，被收购公司股东承诺出售的股份数额超过预定收购的股份数额的，收购人按比例进行收购。
第八十九条 依照前条规定发出收购要约，收购人必须公告上市公司收购报告书，并载明下列事项：
(一) 收购人的名称、住所；
(二) 收购人关于收购的决定；
(三) 被收购的上市公司名称；
(四) 收购目的；
(五) 收购股份的详细名称和预定收购的股份数额；
(六) 收购期限、收购价格；
(七) 收购所需资金额及资金保证；
(八) 公告上市公司收购报告书时持有被收购公司股份数占该公司已发行的股份总数的比例。
收购人还应当将上市公司收购报告书同时提交证券交易所。
第九十条 收购要约约定的收购期限不得少于三十日，并不得超过六十日。
第九十一条 在收购要约确定的承诺期限内，收购人不得撤销其收购要约。收购人需要变更收购要约的，必须及时公告，载明具体变更事项。
第九十二条 收购要约提出的各项收购条件，适用于被收购公司的所有股东。
第九十三条 采取要约收购方式的，收购人在收购期限内，不得卖出被收购公司的股票，也不得采取要约规定以外的形式和超出要约的条件买入被收购公司的股票。
第九十四条 采取协议收购方式的，收购人可以依照法律、行政法规的规定同被收购公司的股东以协议方式进行股份转让。
以协议方式收购上市公司时，达成协议后，收购人必须在三日内将该收购协议向国务院证券监督管理机构及证券交易所作出书面报告，并予公告。
在公告前不得履行收购协议。
第九十五条 采取协议收购方式的，协议双方可以临时委托证券登记结算机构保管协议转让的股票，并将资金存放于指定的银行。
第九十六条 采取协议收购方式的，收购人收购或者通过协议、其它安排与他人共同收购一个上市公司已发行的股份达到百分之三十时，继续进行收购的，应当向该上市公司所有股东发出收购上市公司全部或者部分股份的要约。但是，经国务院证券监督管理机构免除发出要约的除外。
收购人依照前款规定以要约方式收购上市公司股份，应当遵守本法第八十九条至第九十三条的规定。
第九十七条 收购期限届满，被收购公司股权分布不符合上市条件的，该上市公司的股票应当由证券交易所依法终止上市交易；其余仍持有被收购公司股票的股东，有权向收购人以收购要约的同等条件出售其股票，收购人应当收购。
收购行为完成后，被收购公司不再具备股份有限公司条件的，应当依法变更企业形式。
第九十八条 在上市公司收购中，收购人持有的被收购的上市公司的股票，在收购行为完成后的十二个月内不得转让。
第九十九条 收购行为完成后，收购人与被收购公司合并，并将该公司解散的，被解散公司的原有股票由收购人依法更换。
第一百条 收购行为完成后，收购人应当在十五日内将收购情况报告国务院证券监督管理机构和证券交易所，并予公告。
第一百零一条 收购上市公司中由国家授权投资的机构持有的股份，应当按照国务院的规定，经有关主管部门批准。
国务院证券监督管理机构应当依照本法的原则制定上市公司收购的具体办法。
第五章 证券交易所
第一百零二条 证券交易所是为证券集中交易提供场所和设施，组织和监督证券交易，实行自律管理的法人。
证券交易所的设立和解散，由国务院决定。
第一百零三条 设立证券交易所必须制定章程。
证券交易所章程的制定和修改，必须经国务院证券监督管理机构批准。
第一百零四条 证券交易所必须在其名称中标明证券交易所字样。其它任何单位或者个人不得使用证券交易所或者近似的名称。
第一百零五条 证券交易所可以自行支配的各项费用收入，应当首先用于保证其证券交易场所和设施的正常运行并逐步改善。
实行会员制的证券交易所的财产积累归会员所有，其权益由会员共同享有，在其存续期间，不得将其财产积累分配给会员。
第一百零六条 证券交易所设理事会。
第一百零七条 证券交易所设总经理一人，由国务院证券监督管理机构任免。
第一百零八条 有《中华人民共和国公司法》第一百四十六条规定的情形或者下列情形之一的，不得担任证券交易所的负责人：
(一) 因违法行为或者违纪行为被解除职务的证券交易所、证券登记结算机构的负责人或者证券公司的董事、监事、高级管理人员，自被解除职务之日起未逾五年；
(二) 因违法行为或者违纪行为被撤销资格的律师、注册会计师或者投资咨询机构、财务顾问机构、资信评级机构、资产评估机构、验证机构的专业人员，自被撤销资格之日起未逾五年。
第一百零九条 因违法行为或者违纪行为被开除的证券交易所、证券登记结算机构、证券服务机构、证券公司的从业人员和被开除的国家机关工作人员，不得招聘为证券交易所的从业人员。
第一百一十条 进入证券交易所参与集中交易的，必须是证券交易所的会员。
第一百一十一条 投资者应当与证券公司签订证券交易委托协议，并在证券公司开立证券交易账户，以书面、电话以及其它方式，委托该证券公司代其买卖证券。
第一百一十二条 证券公司根据投资者的委托，按照证券交易规则提出交易申报，参与证券交易所场内的集中交易，并根据成交结果承担相应的清算交收责任；证券登记结算机构根据成交结果，按照清算交收规则，与证券公司进行证券和资金的清算交收，并为证券公司客户办理证券的登记过户手续。
第一百一十三条 证券交易所应当为组织公平的集中交易提供保障，公布证券交易实时行情，并按交易日制作证券市场行情表，予以公布。
未经证券交易所许可，任何单位和个人不得发布证券交易实时行情。
第一百一十四条 因突发性事件而影响证券交易的正常进行时，证券交易所可以采取技朮性停牌的措施；因不可抗力的突发性事件或者为维护证券交易的正常秩序，证券交易所可以决定临时停市。
证券交易所采取技朮性停牌或者决定临时停市，必须及时报告国务院证券监督管理机构。
第一百一十五条 证券交易所对证券交易实行实时监控，并按照国务院证券监督管理机构的要求，对异常的交易情况提出报告。
证券交易所应当对上市公司及相关信息披露义务人披露信息进行监督，督促其依法及时、准确地披露信息。
证券交易所根据需要，可以对出现重大异常交易情况的证券账户限制交易，并报国务院证券监督管理机构备案。
第一百一十六条 证券交易所应当从其收取的交易费用和会员费、席位费中提取一定比例的金额设立风险基金。风险基金由证券交易所理事会管理。
风险基金提取的具体比例和使用办法，由国务院证券监督管理机构会同国务院财政部门规定。
第一百一十七条 证券交易所应当将收存的风险基金存入开户银行专门账户，不得擅自使用。
第一百一十八条 证券交易所依照证券法律、行政法规制定上市规则、交易规则、会员管理规则和其它有关规则，并报国务院证券监督管理机构批准。
第一百一十九条 证券交易所的负责人和其它从业人员在执行与证券交易有关的职务时，与其本人或者其亲属有利害关系的，应当回避。
第一百二十条 按照依法制定的交易规则进行的交易，不得改变其交易结果。对交易中违规交易者应负的民事责任不得免除；在违规交易中所获利益，依照有关规定处理。
第一百二十一条 在证券交易所内从事证券交易的人员，违反证券交易所有关交易规则的，由证券交易所给予纪律处分；对情节严重的，撤销其资格，禁止其入场进行证券交易。
第六章 证券公司
第一百二十二条 设立证券公司，必须经国务院证券监督管理机构审查批准。未经国务院证券监督管理机构批准，任何单位和个人不得经营证券业务。
第一百二十三条 本法所称证券公司是指依照《中华人民共和国公司法》和本法规定设立的经营证券业务的有限责任公司或者股份有限公司。
第一百二十四条 设立证券公司，应当具备下列条件：
(一) 有符合法律、行政法规规定的公司章程；
(二) 主要股东具有持续盈利能力，信誉良好，最近三年无重大违法违规记录，净资产不低于人民币二亿元；
(三) 有符合本法规定的注册资本；
(四) 董事、监事、高级管理人员具备任职资格，从业人员具有证券从业资格；
(五) 有完善的风险管理与内部控制制度；
(六) 有合格的经营场所和业务设施；
(七) 法律、行政法规规定的和经国务院批准的国务院证券监督管理机构规定的其它条件。
第一百二十五条 经国务院证券监督管理机构批准，证券公司可以经营下列部分或者全部业务：
(一) 证券经纪；
(二) 证券投资咨询；
(三) 与证券交易、证券投资活动有关的财务顾问；
(四) 证券承销与保荐；
(五) 证券自营；
(六) 证券资产管理；
(七) 其它证券业务。
第一百二十六条 证券公司必须在其名称中标明证券有限责任公司或者证券股份有限公司字样。
第一百二十七条 证券公司经营本法第一百二十五条第(一)项至第(三)项业务的，注册资本最低限额为人民币五千万元；经营第(四)项至第(七)项业务之一的，注册资本最低限额为人民币一亿元；经营第(四)项至第(七)项业务中两项以上的，注册资本最低限额为人民币五亿元。证券公司的注册资本应当是实缴资本。
国务院证券监督管理机构根据审慎监管原则和各项业务的风险程度，可以调整注册资本最低限额，但不得少于前款规定的限额。
第一百二十八条 国务院证券监督管理机构应当自受理证券公司设立申请之日起六个月内，依照法定条件和法定程序并根据审慎监管原则进行审查，作出批准或者不予批准的决定，并通知申请人；不予批准的，应当说明理由。
证券公司设立申请获得批准的，申请人应当在规定的期限内向公司登记机关申请设立登记，领取营业执照。
证券公司应当自领取营业执照之日起十五日内，向国务院证券监督管理机构申请经营证券业务许可证。未取得经营证券业务许可证，证券公司不得经营证券业务。
第一百二十九条 证券公司设立、收购或者撤销分支机构，变更业务范围或者注册资本，变更持有百分之五以上股权的股东、实际控制人，变更公司章程中的重要条款，合并、分立、变更公司形式、停业、解散、破产，必须经国务院证券监督管理机构批准。
证券公司在境外设立、收购或者参股证券经营机构，必须经国务院证券监督管理机构批准。
第一百三十条 国务院证券监督管理机构应当对证券公司的净资本，净资本与负债的比例，净资本与净资产的比例，净资本与自营、承销、资产管理等业务规模的比例，负债与净资产的比例，以及流动资产与流动负债的比例等风险控制指标作出规定。
证券公司不得为其股东或者股东的关联人提供融资或者担保。
第一百三十一条 证券公司的董事、监事、高级管理人员，应当正直诚实，品行良好，熟悉证券法律、行政法规，具有履行职责所需的经营管理能力，并在任职前取得国务院证券监督管理机构核准的任职资格。
有《中华人民共和国公司法》第一百四十六条规定的情形或者下列情形之一的，不得担任证券公司的董事、监事、高级管理人员：
(一) 因违法行为或者违纪行为被解除职务的证券交易所、证券登记结算机构的负责人或者证券公司的董事、监事、高级管理人员，自被解除职务之日起未逾五年；
(二) 因违法行为或者违纪行为被撤销资格的律师、注册会计师或者投资咨询机构、财务顾问机构、资信评级机构、资产评估机构、验证机构的专业人员，自被撤销资格之日起未逾五年。
第一百三十二条 因违法行为或者违纪行为被开除的证券交易所、证券登记结算机构、证券服务机构、证券公司的从业人员和被开除的国家机关工作人员，不得招聘为证券公司的从业人员。
第一百三十三条 国家机关工作人员和法律、行政法规规定的禁止在公司中兼职的其它人员，不得在证券公司中兼任职务。
第一百三十四条 国家设立证券投资者保护基金。证券投资者保护基金由证券公司缴纳的资金及其它依法筹集的资金组成，其筹集、管理和使用的具体办法由国务院规定。
第一百三十五条 证券公司从每年的税后利润中提取交易风险准备金，用于弥补证券交易的损失，其提取的具体比例由国务院证券监督管理机构规定。
第一百三十六条 证券公司应当建立健全内部控制制度，采取有效隔离措施，防范公司与客户之间、不同客户之间的利益冲突。
证券公司必须将其证券经纪业务、证券承销业务、证券自营业务和证券资产管理业务分开办理，不得混合操作。
第一百三十七条 证券公司的自营业务必须以自己的名义进行，不得假借他人名义或者以个人名义进行。
证券公司的自营业务必须使用自有资金和依法筹集的资金。
证券公司不得将其自营账户借给他人使用。
第一百三十八条 证券公司依法享有自主经营的权利，其合法经营不受干涉。
第一百三十九条 证券公司客户的交易结算资金应当存放在商业银行，以每个客户的名义单独立户管理。具体办法和实施步骤由国务院规定。
证券公司不得将客户的交易结算资金和证券归入其自有财产。禁止任何单位或者个人以任何形式挪用客户的交易结算资金和证券。证券公司破产或者清算时，客户的交易结算资金和证券不属于其破产财产或者清算财产。非因客户本身的债务或者法律规定的其它情形，不得查封、冻结、扣划或者强制执行客户的交易结算资金和证券。
第一百四十条 证券公司办理经纪业务，应当置备统一制定的证券买卖委托书，供委托人使用。采取其它委托方式的，必须作出委托记录。
客户的证券买卖委托，不论是否成交，其委托记录应当按照规定的期限，保存于证券公司。
第一百四十一条 证券公司接受证券买卖的委托，应当根据委托书载明的证券名称、买卖数量、出价方式、价格幅度等，按照交易规则代理买卖证券，如实进行交易记录；买卖成交后，应当按照规定制作买卖成交报告单交付客户。
证券交易中确认交易行为及其交易结果的对账单必须真实，并由交易经办人员以外的审核人员逐笔审核，保证账面证券余额与实际持有的证券相一致。
第一百四十二条 证券公司为客户买卖证券提供融资融券服务，应当按照国务院的规定并经国务院证券监督管理机构批准。
第一百四十三条 证券公司办理经纪业务，不得接受客户的全权委托而决定证券买卖、选择证券种类、决定买卖数量或者买卖价格。
第一百四十四条 证券公司不得以任何方式对客户证券买卖的收益或者赔偿证券买卖的损失作出承诺。
第一百四十五条 证券公司及其从业人员不得未经过其依法设立的营业场所私下接受客户委托买卖证券。
第一百四十六条 证券公司的从业人员在证券交易活动中，执行所属的证券公司的指令或者利用职务违反交易规则的，由所属的证券公司承担全部责任。
第一百四十七条 证券公司应当妥善保存客户开户数据、委托记录、交易记录和与内部管理、业务经营有关的各项数据，任何人不得隐匿、伪造、篡改或者毁损。上述资料的保存期限不得少于二十年。
第一百四十八条 证券公司应当按照规定向国务院证券监督管理机构报送业务、财务等经营管理信息和数据。国务院证券监督管理机构有权要求证券公司及其股东、实际控制人在指定的期限内提供有关信息、数据。
证券公司及其股东、实际控制人向国务院证券监督管理机构报送或者提供的信息、数据，必须真实、准确、完整。
第一百四十九条 国务院证券监督管理机构认为有必要时，可以委托会计师事务所、资产评估机构对证券公司的财务状况、内部控制状况、资产价值进行审计或者评估。具体办法由国务院证券监督管理机构会同有关主管部门制定。
第一百五十条 证券公司的净资本或者其它风险控制指标不符合规定的，国务院证券监督管理机构应当责令其限期改正；逾期未改正，或者其行为严重危及该证券公司的稳健运行、损害客户合法权益的，国务院证券监督管理机构可以区别情形，对其采取下列措施：
(一) 限制业务活动，责令暂停部分业务，停止批准新业务；
(二) 停止批准增设、收购营业性分支机构；
(三) 限制分配红利，限制向董事、监事、高级管理人员支付报酬、提供福利；
(四) 限制转让财产或者在财产上设定其它权利；
(五) 责令更换董事、监事、高级管理人员或者限制其权利；
(六) 责令控股股东转让股权或者限制有关股东行使股东权利；
(七) 撤销有关业务许可。
证券公司整改后，应当向国务院证券监督管理机构提交报告。国务院证券监督管理机构经验收，符合有关风险控制指标的，应当自验收完毕之日起三日内解除对其采取的前款规定的有关措施。
第一百五十一条 证券公司的股东有虚假出资、抽逃出资行为的，国务院证券监督管理机构应当责令其限期改正，并可责令其转让所持证券公司的股权。
在前款规定的股东按照要求改正违法行为、转让所持证券公司的股权前，国务院证券监督管理机构可以限制其股东权利。
第一百五十二条 证券公司的董事、监事、高级管理人员未能勤勉尽责，致使证券公司存在重大违法违规行为或者重大风险的，国务院证券监督管理机构可以撤销其任职资格，并责令公司予以更换。
第一百五十三条 证券公司违法经营或者出现重大风险，严重危害证券市场秩序、损害投资者利益的，国务院证券监督管理机构可以对该证券公司采取责令停业整顿、指定其它机构托管、接管或者撤销等监管措施。
第一百五十四条 在证券公司被责令停业整顿、被依法指定托管、接管或者清算期间，或者出现重大风险时，经国务院证券监督管理机构批准，可以对该证券公司直接负责的董事、监事、高级管理人员和其它直接责任人员采取以下措施：
(一) 通知出境管理机关依法阻止其出境；
(二) 申请司法机关禁止其转移、转让或者以其它方式处分财产，或者在财产上设定其它权利。
第七章 证券登记结算机构
第一百五十五条 证券登记结算机构是为证券交易提供集中登记、存管与结算服务，不以营利为目的的法人。
设立证券登记结算机构必须经国务院证券监督管理机构批准。
第一百五十六条 设立证券登记结算机构，应当具备下列条件：
(一) 自有资金不少于人民币二亿元；
(二) 具有证券登记、存管和结算服务所必须的场所和设施；
(三) 主要管理人员和从业人员必须具有证券从业资格；
(四) 国务院证券监督管理机构规定的其它条件。
证券登记结算机构的名称中应当标明证券登记结算字样。
第一百五十七条 证券登记结算机构履行下列职能：
(一) 证券账户、结算账户的设立；
(二) 证券的存管和过户；
(三) 证券持有人名册登记；
(四) 证券交易所上市证券交易的清算和交收；
(五) 受发行人的委托派发证券权益；
(六) 办理与上述业务有关的查询；
(七) 国务院证券监督管理机构批准的其它业务。
第一百五十八条 证券登记结算采取全国集中统一的运营方式。
证券登记结算机构章程、业务规则应当依法制定，并经国务院证券监督管理机构批准。
第一百五十九条 证券持有人持有的证券，在上市交易时，应当全部存管在证券登记结算机构。
证券登记结算机构不得挪用客户的证券。
第一百六十条 证券登记结算机构应当向证券发行人提供证券持有人名册及其有关资料。
证券登记结算机构应当根据证券登记结算的结果，确认证券持有人持有证券的事实，提供证券持有人登记数据。
证券登记结算机构应当保证证券持有人名册和登记过户记录真实、准确、完整，不得隐匿、伪造、篡改或者毁损。
第一百六十一条 证券登记结算机构应当采取下列措施保证业务的正常进行：
(一) 具有必备的服务设备和完善的数据安全保护措施；
(二) 建立完善的业务、财务和安全防范等管理制度；
(三) 建立完善的风险管理系统。
第一百六十二条 证券登记结算机构应当妥善保存登记、存管和结算的原始凭证及有关文件和资料。其保存期限不得少于二十年。
第一百六十三条 证券登记结算机构应当设立结算风险基金，用于垫付或者弥补因违约交收、技朮故障、操作失误、不可抗力造成的证券登记结算机构的损失。
结算风险基金从证券登记结算机构的业务收入和收益中提取，并可以由结算参与人按照证券交易业务量的一定比例缴纳。
证券结算风险基金的筹集、管理办法，由国务院证券监督管理机构会同国务院财政部门规定。
第一百六十四条 风险基金应当存入指定银行的专门账户，实行专项管理。
证券登记结算机构以证券结算风险基金赔偿后，应当向有关责任人追偿。
第一百六十五条 证券登记结算机构申请解散，应当经国务院证券监督管理机构批准。
第一百六十六条 投资者委托证券公司进行证券交易，应当申请开立证券账户。证券登记结算机构应当按照规定以投资者本人的名义为投资者开立证券账户。
投资者申请开立账户，必须持有证明中国公民身份或者中国法人资格的合法证件。国家另有规定的除外。
第一百六十七条 证券登记结算机构为证券交易提供净额结算服务时，应当要求结算参与人按照货银对付的原则，足额交付证券和资金，并提供交收担保。
在交收完成之前，任何人不得动用用于交收的证券、资金和担保物。
结算参与人未按时履行交收义务的，证券登记结算机构有权按照业务规则处理前款所述财产。
第一百六十八条 证券登记结算机构按照业务规则收取的各类结算资金和证券，必须存放于专门的清算交收账户，只能按业务规则用于已成交的证券交易的清算交收，不得被强制执行。
第八章 证券服务机构
第一百六十九条 投资咨询机构、财务顾问机构、资信评级机构、资产评估机构、会计师事务所从事证券服务业务，必须经国务院证券监督管理机构和有关主管部门批准。
投资咨询机构、财务顾问机构、资信评级机构、资产评估机构、会计师事务所从事证券服务业务的审批管理办法，由国务院证券监督管理机构和有关主管部门制定。
第一百七十条 投资咨询机构、财务顾问机构、资信评级机构从事证券服务业务的人员，必须具备证券专业知识和从事证券业务或者证券服务业务二年以上经验。认定其证券从业资格的标准和管理办法，由国务院证券监督管理机构制定。
第一百七十一条 投资咨询机构及其从业人员从事证券服务业务不得有下列行为：
(一) 代理委托人从事证券投资；
(二) 与委托人约定分享证券投资收益或者分担证券投资损失；
(三) 买卖本咨询机构提供服务的上市公司股票；
(四) 利用传播媒介或者通过其它方式提供、传播虚假或者误导投资者的信息；
(五) 法律、行政法规禁止的其它行为。
有前款所列行为之一，给投资者造成损失的，依法承担赔偿责任。
第一百七十二条 从事证券服务业务的投资咨询机构和资信评级机构，应当按照国务院有关主管部门规定的标准或者收费办法收取服务费用。
第一百七十三条 证券服务机构为证券的发行、上市、交易等证券业务活动制作、出具审计报告、资产评估报告、财务顾问报告、资信评级报告或者法律意见书等文件，应当勤勉尽责，对所依据的文件资料内容的真实性、准确性、完整性进行核查和验证。其制作、出具的文件有虚假记载、误导性陈述或者重大遗漏，给他人造成损失的，应当与发行人、上市公司承担连带赔偿责任，但是能够证明自己没有过错的除外。
第九章 证券业协会
第一百七十四条 证券业协会是证券业的自律性组织，是社会团体法人。
证券公司应当加入证券业协会。
证券业协会的权力机构为全体会员组成的会员大会。
第一百七十五条 证券业协会章程由会员大会制定，并报国务院证券监督管理机构备案。
第一百七十六条 证券业协会履行下列职责：
(一) 教育和组织会员遵守证券法律、行政法规；
(二) 依法维护会员的合法权益，向证券监督管理机构反映会员的建议和要求；
(三) 收集整理证券信息，为会员提供服务；
(四) 制定会员应遵守的规则，组织会员单位的从业人员的业务培训，开展会员间的业务交流；
(五) 对会员之间、会员与客户之间发生的证券业务纠纷进行调解；
(六) 组织会员就证券业的发展、运作及有关内容进行研究；
(七) 监督、检查会员行为，对违反法律、行政法规或者协会章程的，按照规定给予纪律处分；
(八) 证券业协会章程规定的其它职责。
第一百七十七条 证券业协会设理事会。理事会成员依章程的规定由选举产生。
第十章 证券监督管理机构
第一百七十八条 国务院证券监督管理机构依法对证券市场实行监督管理，维护证券市场秩序，保障其合法运行。
第一百七十九条 国务院证券监督管理机构在对证券市场实施监督管理中履行下列职责：
(一) 依法制定有关证券市场监督管理的规章、规则，并依法行使审批或者核准权；
(二) 依法对证券的发行、上市、交易、登记、存管、结算，进行监督管理；
(三) 依法对证券发行人、上市公司、证券公司、证券投资基金管理公司、证券服务机构、证券交易所、证券登记结算机构的证券业务活动，进行监督管理；
(四) 依法制定从事证券业务人员的资格标准和行为准则，并监督实施；
(五) 依法监督检查证券发行、上市和交易的信息公开情况；
(六) 依法对证券业协会的活动进行指导和监督；
(七) 依法对违反证券市场监督管理法律、行政法规的行为进行查处；
(八) 法律、行政法规规定的其它职责。
国务院证券监督管理机构可以和其它国家或者地区的证券监督管理机构建立监督管理合作机制，实施跨境监督管理。
第一百八十条 国务院证券监督管理机构依法履行职责，有权采取下列措施：
(一) 对证券发行人、上市公司、证券公司、证券投资基金管理公司、证券服务机构、证券交易所、证券登记结算机构进行现场检查；
(二) 进入涉嫌违法行为发生场所调查取证；
(三) 询问当事人和与被调查事件有关的单位和个人，要求其对与被调查事件有关的事项作出说明；
(四) 查阅、复制与被调查事件有关的财产权登记、通讯记录等数据；
(五) 查阅、复制当事人和与被调查事件有关的单位和个人的证券交易记录、登记过户记录、财务会计数据及其它相关文件和数据；对可能被转移、隐匿或者毁损的文件和资料，可以予以封存；
(六) 查询当事人和与被调查事件有关的单位和个人的资金账户、证券账户和银行账户；对有证据证明已经或者可能转移或者隐匿违法资金、证券等涉案财产或者隐匿、伪造、毁损重要证据的，经国务院证券监督管理机构主要负责人批准，可以冻结或者查封；
(七) 在调查操纵证券市场、内幕交易等重大证券违法行为时，经国务院证券监督管理机构主要负责人批准，可以限制被调查事件当事人的证券买卖，但限制的期限不得超过十五个交易日；案情复杂的，可以延长十五个交易日。
第一百八十一条 国务院证券监督管理机构依法履行职责，进行监督检查或者调查，其监督检查、调查的人员不得少于二人，并应当出示合法证件和监督检查、调查通知书。监督检查、调查的人员少于二人或者未出示合法证件和监督检查、调查通知书的，被检查、调查的单位有权拒绝。
第一百八十二条 国务院证券监督管理机构工作人员必须忠于职守，依法办事，公正廉洁，不得利用职务便利牟取不正当利益，不得泄露所知悉的有关单位和个人的商业秘密。
第一百八十三条 国务院证券监督管理机构依法履行职责，被检查、调查的单位和个人应当配合，如实提供有关文件和资料，不得拒绝、阻碍和隐瞒。
第一百八十四条 国务院证券监督管理机构依法制定的规章、规则和监督管理工作制度应当公开。
国务院证券监督管理机构依据调查结果，对证券违法行为作出的处罚决定，应当公开。
第一百八十五条 国务院证券监督管理机构应当与国务院其它金融监督管理机构建立监督管理信息共享机制。
国务院证券监督管理机构依法履行职责，进行监督检查或者调查时，有关部门应当予以配合。
第一百八十六条 国务院证券监督管理机构依法履行职责，发现证券违法行为涉嫌犯罪的，应当将案件移送司法机关处理。
第一百八十七条 国务院证券监督管理机构的人员不得在被监管的机构中任职。
第十一章 法律责任
第一百八十八条 未经法定机关核准，擅自公开或者变相公开发行证券的，责令停止发行，退还所募资金并加算银行同期存款利息，处以非法所募资金金额百分之一以上百分之五以下的罚款；对擅自公开或者变相公开发行证券设立的公司，由依法履行监督管理职责的机构或者部门会同县级以上地方人民政府予以取缔。对直接负责的主管人员和其它直接责任人员给予警告，并处以三万元以上三十万元以下的罚款。
第一百八十九条 发行人不符合发行条件，以欺骗手段骗取发行核准，尚未发行证券的，处以三十万元以上六十万元以下的罚款；已经发行证券的，处以非法所募资金金额百分之一以上百分之五以下的罚款。对直接负责的主管人员和其它直接责任人员处以三万元以上三十万元以下的罚款。
发行人的控股股东、实际控制人指使从事前款违法行为的，依照前款的规定处罚。
第一百九十条 证券公司承销或者代理买卖未经核准擅自公开发行的证券的，责令停止承销或者代理买卖，没收违法所得，并处以违法所得一倍以上五倍以下的罚款；没有违法所得或者违法所得不足三十万元的，处以三十万元以上六十万元以下的罚款。给投资者造成损失的，应当与发行人承担连带赔偿责任。对直接负责的主管人员和其它直接责任人员给予警告，撤销任职资格或者证券从业资格，并处以三万元以上三十万元以下的罚款。
第一百九十一条 证券公司承销证券，有下列行为之一的，责令改正，给予警告，没收违法所得，可以并处三十万元以上六十万元以下的罚款；情节严重的，暂停或者撤销相关业务许可。给其它证券承销机构或者投资者造成损失的，依法承担赔偿责任。对直接负责的主管人员和其它直接责任人员给予警告，可以并处三万元以上三十万元以下的罚款；情节严重的，撤销任职资格或者证券从业资格：
(一) 进行虚假的或者误导投资者的广告或者其它宣传推介活动；
(二) 以不正当竞争手段招揽承销业务；
(三) 其它违反证券承销业务规定的行为。
第一百九十二条 保荐人出具有虚假记载、误导性陈述或者重大遗漏的保荐书，或者不履行其它法定职责的，责令改正，给予警告，没收业务收入，并处以业务收入一倍以上五倍以下的罚款；情节严重的，暂停或者撤销相关业务许可。对直接负责的主管人员和其它直接责任人员给予警告，并处以三万元以上三十万元以下的罚款；情节严重的，撤销任职资格或者证券从业资格。
第一百九十三条 发行人、上市公司或者其它信息披露义务人未按照规定披露信息，或者所披露的信息有虚假记载、误导性陈述或者重大遗漏的，责令改正，给予警告，并处以三十万元以上六十万元以下的罚款。对直接负责的主管人员和其它直接责任人员给予警告，并处以三万元以上三十万元以下的罚款。
发行人、上市公司或者其它信息披露义务人未按照规定报送有关报告，或者报送的报告有虚假记载、误导性陈述或者重大遗漏的，责令改正，给予警告，并处以三十万元以上六十万元以下的罚款。对直接负责的主管人员和其它直接责任人员给予警告，并处以三万元以上三十万元以下的罚款。
发行人、上市公司或者其它信息披露义务人的控股股东、实际控制人指使从事前两款违法行为的，依照前两款的规定处罚。
第一百九十四条 发行人、上市公司擅自改变公开发行证券所募集资金的用途的，责令改正，对直接负责的主管人员和其它直接责任人员给予警告，并处以三万元以上三十万元以下的罚款。
发行人、上市公司的控股股东、实际控制人指使从事前款违法行为的，给予警告，并处以三十万元以上六十万元以下的罚款。对直接负责的主管人员和其它直接责任人员依照前款的规定处罚。
第一百九十五条 上市公司的董事、监事、高级管理人员、持有上市公司股份百分之五以上的股东，违反本法第四十七条的规定买卖本公司股票的，给予警告，可以并处三万元以上十万元以下的罚款。
第一百九十六条 非法开设证券交易场所的，由县级以上人民政府予以取缔，没收违法所得，并处以违法所得一倍以上五倍以下的罚款；没有违法所得或者违法所得不足十万元的，处以十万元以上五十万元以下的罚款。对直接负责的主管人员和其它直接责任人员给予警告，并处以三万元以上三十万元以下的罚款。
第一百九十七条 未经批准，擅自设立证券公司或者非法经营证券业务的，由证券监督管理机构予以取缔，没收违法所得，并处以违法所得一倍以上五倍以下的罚款；没有违法所得或者违法所得不足三十万元的，处以三十万元以上六十万元以下的罚款。对直接负责的主管人员和其它直接责任人员给予警告，并处以三万元以上三十万元以下的罚款。
第一百九十八条 违反本法规定，聘任不具有任职资格、证券从业资格的人员的，由证券监督管理机构责令改正，给予警告，可以并处十万元以上三十万元以下的罚款；对直接负责的主管人员给予警告，可以并处三万元以上十万元以下的罚款。
第一百九十九条 法律、行政法规规定禁止参与股票交易的人员，直接或者以化名、借他人名义持有、买卖股票的，责令依法处理非法持有的股票，没收违法所得，并处以买卖股票等值以下的罚款；属于国家工作人员的，还应当依法给予行政处分。
第二百条 证券交易所、证券公司、证券登记结算机构、证券服务机构的从业人员或者证券业协会的工作人员，故意提供虚假数据，隐匿、伪造、篡改或者毁损交易记录，诱骗投资者买卖证券的，撤销证券从业资格，并处以三万元以上十万元以下的罚款；属于国家工作人员的，还应当依法给予行政处分。
第二百零一条 为股票的发行、上市、交易出具审计报告、资产评估报告或者法律意见书等文件的证券服务机构和人员，违反本法第四十五条的规定买卖股票的，责令依法处理非法持有的股票，没收违法所得，并处以买卖股票等值以下的罚款。
第二百零二条 证券交易内幕信息的知情人或者非法获取内幕信息的人，在涉及证券的发行、交易或者其它对证券的价格有重大影响的信息公开前，买卖该证券，或者泄露该信息，或者建议他人买卖该证券的，责令依法处理非法持有的证券，没收违法所得，并处以违法所得一倍以上五倍以下的罚款；没有违法所得或者违法所得不足三万元的，处以三万元以上六十万元以下的罚款。单位从事内幕交易的，还应当对直接负责的主管人员和其它直接责任人员给予警告，并处以三万元以上三十万元以下的罚款。证券监督管理机构工作人员进行内幕交易的，从重处罚。
第二百零三条 违反本法规定，操纵证券市场的，责令依法处理非法持有的证券，没收违法所得，并处以违法所得一倍以上五倍以下的罚款；没有违法所得或者违法所得不足三十万元的，处以三十万元以上三百万元以下的罚款。单位操纵证券市场的，还应当对直接负责的主管人员和其它直接责任人员给予警告，并处以十万元以上六十万元以下的罚款。
第二百零四条 违反法律规定，在限制转让期限内买卖证券的，责令改正，给予警告，并处以买卖证券等值以下的罚款。对直接负责的主管人员和其它直接责任人员给予警告，并处以三万元以上三十万元以下的罚款。
第二百零五条 证券公司违反本法规定，为客户买卖证券提供融资融券的，没收违法所得，暂停或者撤销相关业务许可，并处以非法融资融券等值以下的罚款。对直接负责的主管人员和其它直接责任人员给予警告，撤销任职资格或者证券从业资格，并处以三万元以上三十万元以下的罚款。
第二百零六条 违反本法第七十八条第一款、第三款的规定，扰乱证券市场的，由证券监督管理机构责令改正，没收违法所得，并处以违法所得一倍以上五倍以下的罚款；没有违法所得或者违法所得不足三万元的，处以三万元以上二十万元以下的罚款。
第二百零七条 违反本法第七十八条第二款的规定，在证券交易活动中作出虚假陈述或者信息误导的，责令改正，处以三万元以上二十万元以下的罚款；属于国家工作人员的，还应当依法给予行政处分。
第二百零八条 违反本法规定，法人以他人名义设立账户或者利用他人账户买卖证券的，责令改正，没收违法所得，并处以违法所得一倍以上五倍以下的罚款；没有违法所得或者违法所得不足三万元的，处以三万元以上三十万元以下的罚款。对直接负责的主管人员和其它直接责任人员给予警告，并处以三万元以上十万元以下的罚款。
证券公司为前款规定的违法行为提供自己或者他人的证券交易账户的，除依照前款的规定处罚外，还应当撤销直接负责的主管人员和其它直接责任人员的任职资格或者证券从业资格。
第二百零九条 证券公司违反本法规定，假借他人名义或者以个人名义从事证券自营业务的，责令改正，没收违法所得，并处以违法所得一倍以上五倍以下的罚款；没有违法所得或者违法所得不足三十万元的，处以三十万元以上六十万元以下的罚款；情节严重的，暂停或者撤销证券自营业务许可。对直接负责的主管人员和其它直接责任人员给予警告，撤销任职资格或者证券从业资格，并处以三万元以上十万元以下的罚款。
第二百一十条 证券公司违背客户的委托买卖证券、办理交易事项，或者违背客户真实意思表示，办理交易以外的其它事项的，责令改正，处以一万元以上十万元以下的罚款。给客户造成损失的，依法承担赔偿责任。
第二百一十一条 证券公司、证券登记结算机构挪用客户的资金或者证券，或者未经客户的委托，擅自为客户买卖证券的，责令改正，没收违法所得，并处以违法所得一倍以上五倍以下的罚款；没有违法所得或者违法所得不足十万元的，处以十万元以上六十万元以下的罚款；情节严重的，责令关闭或者撤销相关业务许可。对直接负责的主管人员和其它直接责任人员给予警告，撤销任职资格或者证券从业资格，并处以三万元以上三十万元以下的罚款。
第二百一十二条 证券公司办理经纪业务，接受客户的全权委托买卖证券的，或者证券公司对客户买卖证券的收益或者赔偿证券买卖的损失作出承诺的，责令改正，没收违法所得，并处以五万元以上二十万元以下的罚款，可以暂停或者撤销相关业务许可。对直接负责的主管人员和其它直接责任人员给予警告，并处以三万元以上十万元以下的罚款，可以撤销任职资格或者证券从业资格。
第二百一十三条 收购人未按照本法规定履行上市公司收购的公告、发出收购要约等义务的，责令改正，给予警告，并处以十万元以上三十万元以下的罚款；在改正前，收购人对其收购或者通过协议、其它安排与他人共同收购的股份不得行使表决权。对直接负责的主管人员和其它直接责任人员给予警告，并处以三万元以上三十万元以下的罚款。
第二百一十四条 收购人或者收购人的控股股东，利用上市公司收购，损害被收购公司及其股东的合法权益的，责令改正，给予警告；情节严重的，并处以十万元以上六十万元以下的罚款。给被收购公司及其股东造成损失的，依法承担赔偿责任。对直接负责的主管人员和其它直接责任人员给予警告，并处以三万元以上三十万元以下的罚款。
第二百一十五条 证券公司及其从业人员违反本法规定，私下接受客户委托买卖证券的，责令改正，给予警告，没收违法所得，并处以违法所得一倍以上五倍以下的罚款；没有违法所得或者违法所得不足十万元的，处以十万元以上三十万元以下的罚款。
第二百一十六条 证券公司违反规定，未经批准经营非上市证券的交易的，责令改正，没收违法所得，并处以违法所得一倍以上五倍以下的罚款。
第二百一十七条 证券公司成立后，无正当理由超过三个月未开始营业的，或者开业后自行停业连续三个月以上的，由公司登记机关吊销其公司营业执照。
第二百一十八条 证券公司违反本法第一百二十九条的规定，擅自设立、收购、撤销分支机构，或者合并、分立、停业、解散、破产，或者在境外设立、收购、参股证券经营机构的，责令改正，没收违法所得，并处以违法所得一倍以上五倍以下的罚款；没有违法所得或者违法所得不足十万元的，处以十万元以上六十万元以下的罚款。对直接负责的主管人员给予警告，并处以三万元以上十万元以下的罚款。
证券公司违反本法第一百二十九条的规定，擅自变更有关事项的，责令改正，并处以十万元以上三十万元以下的罚款。对直接负责的主管人员给予警告，并处以五万元以下的罚款。
第二百一十九条 证券公司违反本法规定，超出业务许可范围经营证券业务的，责令改正，没收违法所得，并处以违法所得一倍以上五倍以下的罚款；没有违法所得或者违法所得不足三十万元的，处以三十万元以上六十万元以下罚款；情节严重的，责令关闭。对直接负责的主管人员和其它直接责任人员给予警告，撤销任职资格或者证券从业资格，并处以三万元以上十万元以下的罚款。
第二百二十条 证券公司对其证券经纪业务、证券承销业务、证券自营业务、证券资产管理业务，不依法分开办理，混合操作的，责令改正，没收违法所得，并处以三十万元以上六十万元以下的罚款；情节严重的，撤销相关业务许可。对直接负责的主管人员和其它直接责任人员给予警告，并处以三万元以上十万元以下的罚款；情节严重的，撤销任职资格或者证券从业资格。
第二百二十一条 提交虚假证明文件或者采取其它欺诈手段隐瞒重要事实骗取证券业务许可的，或者证券公司在证券交易中有严重违法行为，不再具备经营资格的，由证券监督管理机构撤销证券业务许可。
第二百二十二条 证券公司或者其股东、实际控制人违反规定，拒不向证券监督管理机构报送或者提供经营管理信息和数据，或者报送、提供的经营管理信息和数据有虚假记载、误导性陈述或者重大遗漏的，责令改正，给予警告，并处以三万元以上三十万元以下的罚款，可以暂停或者撤销证券公司相关业务许可。对直接负责的主管人员和其它直接责任人员，给予警告，并处以三万元以下的罚款，可以撤销任职资格或者证券从业资格。
证券公司为其股东或者股东的关联人提供融资或者担保的，责令改正，给予警告，并处以十万元以上三十万元以下的罚款。对直接负责的主管人员和其它直接责任人员，处以三万元以上十万元以下的罚款。股东有过错的，在按照要求改正前，国务院证券监督管理机构可以限制其股东权利；拒不改正的，可以责令其转让所持证券公司股权。
第二百二十三条 证券服务机构未勤勉尽责，所制作、出具的文件有虚假记载、误导性陈述或者重大遗漏的，责令改正，没收业务收入，暂停或者撤销证券服务业务许可，并处以业务收入一倍以上五倍以下的罚款。对直接负责的主管人员和其它直接责任人员给予警告，撤销证券从业资格，并处以三万元以上十万元以下的罚款。
第二百二十四条 违反本法规定，发行、承销公司债券的，由国务院授权的部门依照本法有关规定予以处罚。
第二百二十五条 上市公司、证券公司、证券交易所、证券登记结算机构、证券服务机构，未按照有关规定保存有关文件和资料的，责令改正，给予警告，并处以三万元以上三十万元以下的罚款；隐匿、伪造、篡改或者毁损有关文件和资料的，给予警告，并处以三十万元以上六十万元以下的罚款。
第二百二十六条 未经国务院证券监督管理机构批准，擅自设立证券登记结算机构的，由证券监督管理机构予以取缔，没收违法所得，并处以违法所得一倍以上五倍以下的罚款。
投资咨询机构、财务顾问机构、资信评级机构、资产评估机构、会计师事务所未经批准，擅自从事证券服务业务的，责令改正，没收违法所得，并处以违法所得一倍以上五倍以下的罚款。
证券登记结算机构、证券服务机构违反本法规定或者依法制定的业务规则的，由证券监督管理机构责令改正，没收违法所得，并处以违法所得一倍以上五倍以下的罚款；没有违法所得或者违法所得不足十万元的，处以十万元以上三十万元以下的罚款；情节严重的，责令关闭或者撤销证券服务业务许可。
第二百二十七条 国务院证券监督管理机构或者国务院授权的部门有下列情形之一的，对直接负责的主管人员和其它直接责任人员，依法给予行政处分：
(一) 对不符合本法规定的发行证券、设立证券公司等申请予以核准、批准的；
(二) 违反规定采取本法第一百八十条规定的现场检查、调查取证、查询、冻结或者查封等措施的；
(三) 违反规定对有关机构和人员实施行政处罚的；
(四) 其它不依法履行职责的行为。
第二百二十八条 证券监督管理机构的工作人员和发行审核委员会的组成人员，不履行本法规定的职责，滥用职权、玩忽职守，利用职务便利牟取不正当利益，或者泄露所知悉的有关单位和个人的商业秘密的，依法追究法律责任。
第二百二十九条 证券交易所对不符合本法规定条件的证券上市申请予以审核同意的，给予警告，没收业务收入，并处以业务收入一倍以上五倍以下的罚款。对直接负责的主管人员和其它直接责任人员给予警告，并处以三万元以上三十万元以下的罚款。
第二百三十条 拒绝、阻碍证券监督管理机构及其工作人员依法行使监督检查、调查职权未使用暴力、威胁方法的，依法给予治安管理处罚。
第二百三十一条 违反本法规定，构成犯罪的，依法追究刑事责任。
第二百三十二条 违反本法规定，应当承担民事赔偿责任和缴纳罚款、罚金，其财产不足以同时支付时，先承担民事赔偿责任。
第二百三十三条 违反法律、行政法规或者国务院证券监督管理机构的有关规定，情节严重的，国务院证券监督管理机构可以对有关责任人员采取证券市场禁入的措施。
前款所称证券市场禁入，是指在一定期限内直至终身不得从事证券业务或者不得担任上市公司董事、监事、高级管理人员的制度。
第二百三十四条 依照本法收缴的罚款和没收的违法所得，全部上缴国库。
第二百三十五条 当事人对证券监督管理机构或者国务院授权的部门的处罚决定不服的，可以依法申请行政复议，或者依法直接向人民法院提起诉讼。
第十二章 附 则
第二百三十六条 本法施行前依照行政法规已批准在证券交易所上市交易的证券继续依法进行交易。
本法施行前依照行政法规和国务院金融行政管理部门的规定经批准设立的证券经营机构，不完全符合本法规定的，应当在规定的限期内达到本法规定的要求。具体实施办法，由国务院另行规定。
第二百三十七条 发行人申请核准公开发行股票、公司债券，应当按照规定缴纳审核费用。
第二百三十八条 境内企业直接或者间接到境外发行证券或者将其证券在境外上市交易，必须经国务院证券监督管理机构依照国务院的规定批准。
第二百三十九条 境内公司股票以外币认购和交易的，具体办法由国务院另行规定。
第二百四十条 本法自2006年1月1日起施行。
PRC President's Order (No.14 of the 12th NPC)
Part One: General provisions
Article 1: This Law is formulated in order to standardise the issuing and trading of securities, to protect the lawful rights and interests of investors, to safeguard the social and economic order and the public interest and to promote the development of the socialist market economy.
Article 2: This Law applies to the issuing and trading in the People's Republic of China of shares, corporate bonds and such other securities as are lawfully recognised by the State Council. Securities not covered by this Law shall be governed by the PRC Company Law and other laws and administrative regulations.
This Law shall apply to the listing and trading of government bonds and shares of securities investment funds, unless other otherwise provided by laws or administrative regulations, in which case such provisions shall apply.
The measures for the administration of the offering and trading of securities derivatives will be specified by the State Council in line with the principles of this Law.
Article 3: The issuing and trading of securities must be carried out in line with the principles of openness, fairness and justice.
Article 4: The parties involved in the issuing and trading of securities shall have equal legal status and adhere to the principles of voluntariness, compensation and good faith.
Article 5: The issuing and trading of securities must be conducted in accordance with laws and administrative regulations. Fraudulent and insider trading and manipulation of the securities market are prohibited.
Article 6: The securities business shall be engaged in and administrated as a business separate from banking business, trust business and insurance business. Securities companies shall be established independently from banking, trust and insurance business organisations. If the state has other provisions, such provisions shall be exceptions.
Article 7: The State Council's securities regulatory authority shall implement centralised and unified regulation of the nationwide securities market according to law.
The State Council's securities regulatory authority may establish offices as necessary, in order to perform its regulatory functions as authorised.
Article 8: Subject to centralised and unified regulation by the state of securities issuing and trading activities, securities associations shall be established according to law to carry out self-regulation.
Article 9: The state audit authority shall supervise stock exchanges, securities companies, securities depository and clearing institutions and the securities regulatory authority, by means of auditing the same according to law.
Part Two: Offering of securities
Article 10: Public offers of securities must meet the conditions prescribed in laws and administrative regulations and be reported in accordance with the law to the State Council's securities regulatory authority, or the department authorised by the State Council, for check and approval. No work unit or individual may make a public offer of securities if the same has not been checked and approved in accordance with the law.
A public offer shall be constituted if:
(1) the securities are offered to the public in general;
(2) the offer of securities is targeted at particular persons who, in the aggregate, exceed 200; or
(3) another offer as specified in laws or administrative regulations is made.
The use of announcements, public inducements or a disguised public offer method is not permitted for non-public offers of securities.
Article 11: If an issuer applies to offer to the public shares or corporate bonds convertible into shares and such offer is to be underwritten in accordance with the law or if it is to offer to the public other securities that laws or administrative regulations specify are subject to a sponsorship system, it shall engage an institution with sponsorship qualifications to serve as sponsor.
A sponsor shall abide by professional rules and the industry code, act in good faith with due diligence, prudently check the issuer's application documents and information disclosure materials and guide the issuer in operating with compliance.
The qualifications of sponsors and the measures for the administration thereof shall be specified by the State Council's securities regulatory authority.
Article 12: The public offer of shares for the establishment of a company limited by shares shall comply with the conditions set forth in the PRC Company Law and other conditions specified by the State Council's securities regulatory authority as approved by the State Council, and the offer application and the following documents shall be submitted to the State Council's securities regulatory authority:
(1) the company's articles of association;
(2) the promoters' agreement;
(3) the promoters' names, the number of shares for which they have subscribed, the nature of their capital contributions and their investment certificates;
(4) the share prospectus;
(5) the name and address of the bank that will receive the share proceeds on the company's behalf; and
(6) the name of the underwriter and relevant agreement.
If a sponsor is engaged in accordance with this Law, the offer sponsorship letter issued by the sponsor shall also be submitted.
If laws or administrative regulations specify that the establishment of the company is subject to approval, the relevant approval documents shall also be submitted.
Article 13: A company that wishes to make a public offer of new shares shall satisfy the following conditions:
(1) having a sound organisational structure that operates well;
(2) having the capacity for sustained profitability and a good financial position;
(3) not having fraudulent entries in its financial accounting documents for the most recent three years or committed another major violation of the law; and
(4) satisfying other conditions specified by the State Council's securities regulatory authority as approved by the State Council.
If a listed company is to make a non-public offer of new shares, it shall satisfy the conditions specified by the State Council's securities regulatory authority as approved by the State Council and make a submission to the State Council's securities regulatory authority for check and approval.
Article 14: When a company is to make a public offer of new shares, it shall submit its offer application and the following documents to the State Council's securities regulatory authority:
(1) the company's business licence;
(2) the company's articles of association;
(3) the resolution of the shareholders' general meeting;
(4) the share prospectus;
(5) financial accounting reports;
(6) the name and address of the bank that will receive the share proceeds on the company's behalf; and
(7) the name of the underwriter and relevant agreement.
If a sponsor is engaged in accordance with this Law, the offer sponsorship letter issued by the sponsor shall also be submitted.
Article 15: The proceeds of a public offer of shares by a company must be used in accordance with the purpose of the funds as described in the share prospectus. Any change in the purpose of the funds described in the share prospectus must require a resolution of the shareholders' general meeting. If the purpose is changed without authorisation and such change is not rectified, or not subsequently ratified by the shareholders' general meeting, no public offer of new shares may be allowed.
Article 16: To make a public offer of corporate bonds, the following conditions shall be satisfied:
(1) in the case of a company limited by shares, having net assets of not less than Rmb30 million, or, in the case of a limited liability company, having net assets of not less than Rmb60 million;
(2) the balance of bonds will not, in the aggregate, exceed 40% of the company's net assets;
(3) the average distributable profits for the most recent three years are sufficient to pay the interest on the corporate bonds for one year;
(4) the investment orientation for the proceeds complies with state industrial policies;
(5) the coupon rate on the bonds does not exceed the coupon rate level set by the State Council; and
(6) other conditions specified by the State Council.
The proceeds from a public offer of corporate bonds must be used for the approved purpose and may not be used to make up losses or for non-production related expenditures.
A listed company that offers corporate bonds convertible into shares shall, in addition to satisfying the conditions specified in the first paragraph, satisfy the conditions for the public offer of shares of this Law and make a submission to the State Council's securities regulatory authority for check and approval.
Article 17: To apply to make a public offer of corporate bonds, the following documents shall be submitted to the department authorised by the State Council or the State Council's securities regulatory authority:
(1) the company's business licence;
(2) the company's articles of association;
(3) the corporate bond offer method;
(4) an asset appraisal report and capital verification report; and
(5) other documents specified by the department authorised by the State Council or the State Council's securities regulatory authority.
If a sponsor is engaged in accordance with this Law, the offer sponsorship letter issued by the sponsor shall also be submitted.
Article 18: No further public offer of corporate bonds may be made if:
(1) not all of the corporate bonds from the previous public offer have been taken up;
(2) a breach of contract has been committed in respect of, or the principal and interest have not been paid on time on, corporate bonds that have already been issued to the public or other debts, and such state is ongoing; or
(3) the purpose of the proceeds from a public offer of corporate bonds was changed in violation of this Law.
Article 19: The formats and submission methods of the application documents to be submitted by issuers in applying in accordance with the law for check and approval of offer of securities shall be prescribed by the authority or department responsible for check and approval according to law.
Article 20: The application documents for the issuing of securities submitted by issuers to the State Council's securities regulatory authority or the department authorised by the State Council must be truthful, accurate and complete.
Securities service institutions and personnel that issue relevant documents for an offer of securities must strictly perform their statutory duties and warrant the truthfulness, accuracy and completeness of the documents that they issue.
Article 21: When an issuer is to make an initial public offering of shares, it shall, after submitting the application documents, disclose in advance the application documents in accordance with the provisions of the State Council's securities regulatory authority.
Article 22: The State Council's securities regulatory authority shall establish a public offering review committee to review, in accordance with the law, applications to offer shares.
The public offering review committee shall consist of professionals from the State Council's securities regulatory authority and other relevant specialists engaged from outside the said authority. The committee shall vote on applications to offer shares and state the opinion reached by it upon review.
The specific method for forming the public offering review committee, the term of office of its members and its working procedures shall be specified by the State Council's securities regulatory authority.
Article 23: The State Council's securities regulatory authority shall be responsible for the check and approval of applications to offer shares in accordance with the statutory conditions. The check and approval procedures shall be made public, and shall be subject to supervision according to law.
The persons involved in the review, or check and approval, of applications to offer shares may not have a material connection with, or directly or indirectly accept gifts from, the applicant, or hold shares for whose issuance the application for check and approval has been made or have any private contact with the applicant.
The check and approval by the department authorised by the State Council of applications to offer corporate bonds shall be carried out by reference to the preceding two paragraphs.
Article 24: The State Council's securities regulatory authority or the department authorised by the State Council shall decide whether to approve upon check or not, based on the statutory conditions and the statutory procedure, within three months of the date of acceptance of the securities offer application documents. Any period during which the issuer supplements or revises the offer application documents as required shall not be counted within the aforementioned three months. If the State Council's securities regulatory authority or the department authorised by the State Council withholds its approval, it shall state the reasons therefor.
Article 25: Once an application to offer securities has been checked and approved, the issuer shall publish the public offer documents prior to making the public offer of the securities, as prescribed in laws and administrative regulations, and make the said documents available for public review at the designated locations.
Prior to disclosing in accordance with the law of the information that securities are to be offered, no informed person may disclose or divulge such information.
Issuers may not offer securities before they publish the public offer documents.
Article 26: If, after rendering a decision to approve an offer of securities, the State Council's securities regulatory authority or the department authorised by the State Council discovers that the offer fails to comply with the statutory conditions or statutory procedure, and the issue has yet to be made, it shall revoke the decision and discontinue the issuing. If the issue has been made but the securities have yet to be listed, it shall revoke its approval decision and the issuer shall issue a refund to the holders of the securities at the issue price plus interest at the rate on bank deposits of the same period. The sponsor shall be jointly and severally liable with the issuer, unless it is able to establish that it was not at fault. If the issuer's controlling shareholder or de facto controller was at fault, it shall be jointly and severally liable with the issuer.
Article 27: After shares have been issued in accordance with the law, the issuer shall itself be responsible for any change in its operations or earnings; and the investors shall themselves be responsible for any investment risks caused by such change.
Article 28: If an issuer makes an offer of securities to the public in general and laws or administrative regulations specify that such offer shall be underwritten by a securities company, the issuer shall execute an underwriting agreement with a securities company. The underwriting of securities shall take the form either of best efforts underwriting or firm commitment underwriting.
The term 'best efforts underwriting' means the method of underwriting whereby the securities company sells the securities on the behalf of the issuer and, at the end of the underwriting period, returns to the issuer all of the unsold securities.
The term 'firm commitment underwriting' means the method of underwriting whereby the securities company purchases, pursuant to an agreement, all of the issuer's securities or whereby it purchases, at the end of the underwriting period, all the securities remaining after the sale.
Article 29: An issuer that makes a public offer of securities has the right to independently select, in accordance with the law, a securities company to carry out underwriting. Securities companies may not solicit securities underwriting business by means of unfair competition.
Article 30: To underwrite securities, a securities company shall enter into a best efforts underwriting agreement or a firm commitment underwriting agreement with the issuer. Such agreement shall include the following:
(1) the names and domiciles of the parties and the names of their legal representatives;
(2) the class, quantity, amount and offering price of the securities to be underwritten on a best efforts or firm commitment basis;
(3) the period and the initial and final dates for underwriting on a best efforts or firm commitment basis;
(4) the method and date of payment of the proceeds from underwriting on a best efforts or firm commitment basis;
(5) the fee for underwriting on a best efforts or firm commitment basis and the method of settlement thereof;
(6) liability for breach of contract; and
(7) other matters prescribed by the State Council's securities regulatory authority.
Article 31: When underwriting securities, securities companies must examine the truthfulness, accuracy and completeness of the public offer documents. If they find that such documents contain any falsehoods, misleading statements or major omissions, they may not carry out the sales activities. If the securities company has already begun to sell the securities, it must immediately discontinue the sales activities and adopt rectification measures.
Article 32: If the total face value of securities to be offered to the public in general exceeds Rmb50 million, the offer shall be underwritten by an underwriting syndicate. The underwriting syndicate shall be composed of a securities company acting as chief underwriter and participating securities companies.
Article 33: The maximum period for best efforts or firm commitment underwriting of securities shall be 90 days.
During the period of best efforts or firm commitment underwriting, securities companies shall ensure that the securities underwritten on a best efforts or firm commitment basis are first sold to subscribers. Securities companies may not first set aside for themselves securities that they underwrite on a best efforts basis, or purchase in advance and retain securities that they have underwritten on a firm commitment basis.
Article 34: If shares are issued at a premium, the issuing price shall be determined through consultations between the issuer and the securities company handling the underwriting.
Article 35: If an offer of shares is made using best efforts underwriting and the quantity of shares sold to investors at the expiration of the underwriting period falls below 70% of the offer target, the offer shall be deemed a failure and the issuer shall issue a refund to the share subscribers at the issue price plus interest at the rate on bank deposits of the same period.
Article 36: When a public offer of shares is made, the issuer shall, within the prescribed period after the expiration of the best efforts or firm commitment underwriting period, report the details of its share offer to the State Council's securities regulatory authority for the record.
Part Three: Trading of securities
Section One: General provisions
Article 37: Securities purchased and sold in accordance with the law by the parties to a securities transaction must be securities that have been issued and delivered in accordance with the law.
Securities that have not been issued in accordance with the law may not be purchased and sold.
Article 38: Shares, corporate bonds and other securities issued in accordance with the law that are subject to legal restrictions on the period during which they may be transferred may not be purchased or sold during the restricted period.
Article 39: Shares, corporate bonds and other securities publicly offered in accordance with the law shall be listed and traded on a stock exchange established in accordance with the law or transferred in another securities trading venue approved by the State Council.
Article 40: The listing and trading of securities on a stock exchange shall be accomplished through public, centralised trading or other method approved by the State Council's securities regulatory authority.
Article 41: The securities purchased and sold by the parties to a securities transaction may be in the form of scripts or such other forms as prescribed by the State Council's securities regulatory authority.
Article 42: Securities trading shall take the form of spot transactions or such other forms as prescribed by the State Council.
Article 43: The working personnel of stock exchanges, securities companies, securities depository and clearing institutions and the securities regulatory authority, and other persons prohibited by laws and administrative regulations from participating in share trading, may not, while in office or during the statutory period, hold, purchase or sell shares directly, under an assumed name or under the name of another. Such working personnel and persons also may not accept shares as gifts.
When anyone becomes a member of working personnel or a person as described in the preceding paragraph, he/she must transfer any existing shareholding in accordance with the law.
Article 44: Stock exchanges, securities companies and securities depository and clearing institutions must keep confidential the accounts opened for their clients according to law.
Article 45: Securities service institutions and persons that issue documents such as audit reports, asset appraisal reports or legal opinions, etc. for a share offer may not purchase or sell the shares in question during the underwriting period for such shares and for a period of six months after the expiration thereof.
In addition to the provisions of the preceding paragraph, securities service institutions and persons that issue documents such as audit reports, asset appraisal reports or legal opinions, etc. for listed companies may not purchase or sell the shares in question from the date on which they accept the appointment by the listed company until the sixth day after the said documents have been disclosed.
Article 46: The fees charged for securities trading must be reasonable. The fee items, fee standards and collection methods shall be made public.
The fee items, fee standards and administration methods for securities trading shall be centrally prescribed by the relevant competent department of the State Council.
Article 47: If a director, supervisor or senior officer of a listed company, or a shareholder who holds at least 5% of the shares of a listed company, sells shares of the company that he/she/it holds within six months of acquiring the same, or buys such shares back within six months of selling the same, the gains obtained therefrom shall belong to the company and the board of directors of the company shall recover such gains from him/her/it. However, a securities company that underwrote shares on a firm commitment basis and which, after purchasing the shares remaining after the sale, holds at least 5% of the shares shall not be subject to the six month time limit when selling such shares.
If the board of directors of the company fails to act in accordance with the preceding paragraph, shareholders shall have the right to demand that the board of directors act within 30 days. If the board of directors of the company fails to act within the aforementioned time period, shareholders shall have the right, in the interests of the company, to directly institute legal proceedings in a people's court in their own name.
If the board of directors of the company fails to act in accordance with the first paragraph, the responsible directors shall be jointly and severally liable in accordance with the law.
Section Two: Listing of securities
Article 48: When applying for the listing and trading of securities, an application shall be submitted to the stock exchange, which shall review the same and give its consent in accordance with the law, after which the parties shall execute a listing agreement.
A stock exchange shall arrange for the listing and trading of government bonds pursuant to a decision of the department authorised by the State Council.
Article 49: When applying for the listing and trading of shares, corporate bonds convertible into shares or other securities that laws or administrative regulations specify are subject to the sponsorship system, an institution with sponsorship qualifications shall be engaged to act as sponsor.
The second and third paragraphs of Article 11 hereof shall apply to listing sponsors.
Article 50: A company limited by shares applying to list its shares shall satisfy the following conditions:
(1) its shares have been publicly issued after check and approval by the State Council's securities regulatory authority;
(2) the company's total share capital is not less than
Rmb30 million;
(3) the publicly issued shares account for at least 25% of the company's total shares; or, in the case of a company whose total share capital exceeds Rmb400 million, its publicly issued shares account for at least 10% of the company's total shares; and
(4) the company has not committed a major violation of the law nor have there been fraudulent entries in its financial accounting reports during the most recent three years.
A stock exchange may specify listing conditions that are more stringent than those in the preceding paragraph, which it shall submit to the State Council's securities regulatory authority for approval.
Article 51: The State encourages companies that conform to industrial policies and meet the conditions for listing to have their shares listed.
Article 52: When applying for listing and trading of shares, the following documents shall be submitted to the stock exchange:
(1) the listing report;
(2) the resolution passed at the shareholders' general meeting concerning the share listing application;
(3) the company's articles of association;
(4) the company's business licence;
(5) the financial accounting reports of the company for the most recent three years audited by an accounting firm in accordance with the law;
(6) a legal opinion and a listing sponsorship letter;
(7) the most recent share prospectus; and
(8) other documents specified in the listing rules of the stock exchange.
Article 53: Once an application for the listing and trading of shares has been reviewed and approved by the stock exchange, the company that signed the listing agreement shall publish the documents relating to the share listing within the prescribed period of time and make such documents available for public review at the designated locations.
Article 54: In addition to publishing the documents specified in the preceding article, the company that signed the listing agreement shall publish the following matters:
(1) the date on which the shares are approved for trading on the stock exchange;
(2) a list of the names and holdings of the 10 shareholders who hold the largest numbers of shares in the company;
(3) the de facto controller of the company; and
(4) the names of the directors, supervisors and senior officers, and particulars of their holdings of the company's shares and/or bonds.
Article 55: A stock exchange shall decide to suspend the listing and trading of a listed company's shares if:
(1) the company no longer satisfies listing conditions due to a change in the company's total share capital, spread in share equity, etc.;
(2) the company fails to disclose details of its financial position in accordance with provisions or has made fraudulent entries in its financial accounting report, which could mislead investors;
(3) the company has committed a major violation of the law;
(4) the company has suffered continuous losses during the most recent three years; or
(5) another circumstance specified in the listing rules of the stock exchange arises.
Article 56: A stock exchange shall decide to terminate the listing and trading of a listed company's shares if:
(1) a change in the company's total share capital, spread in share equity, etc. changes in such a way that it no longer satisfies listing conditions, and it still fails to meet listing conditions after the period specified by the stock exchange;
(2) the company fails to disclose details of its financial position or has made fraudulent entries in its financial and accounting reports, and refuses to rectify the same;
(3) the company has suffered continuous losses during the most recent three years., and fails to return to profitability in the subsequent year;
(4) the company is dissolved or declared bankrupt; or
(5) another circumstance specified in the listing rules of the stock exchange arises.
Article 57: Companies applying for listing and trading of corporate bonds shall meet the following conditions:
(1) the term of the corporate bonds is not less than one year;
(2) the amount of corporate bonds actually issued is not less than Rmb50 million; and
(3) the company still meets the statutory conditions for the issuing of corporate bonds at the time of application for the listing of its bonds.
Article 58: When applying for listing and trading of corporate bonds, the following documents shall be submitted to the stock exchange:
(1) the listing report;
(2) the resolution of the board of directors concerning the corporate bond listing application;
(3) the company's articles of association;
(4) the company's business licence;
(5) the method of offer of the corporate bonds;
(6) the number of corporate bonds actually issued; and
(7) other documents specified in the listing rules of the stock exchange.
If an application is made for the listing and trading of corporate bonds convertible into shares, the listing sponsorship letter issued by the sponsor shall also be submitted.
Article 59: Once an application for the listing and trading of corporate bonds has been reviewed and approved by the stock exchange, the company that signed the listing agreement shall publish its corporate bond listing documents and relevant documents within the prescribed period of time and make its application documents available for public review at the designated locations.
Article 60: A stock exchange shall decide to suspend the listing and trading of a company's corporate bonds if after the corporate bonds have been listed for trading:
(1) the company commits a major illegal act;
(2) the company no longer meets the conditions for listing corporate bonds due to a major change in its circumstances;
(3) the proceeds of the corporate bond offer are not used for the approved purpose;
(4) the company fails to perform its obligations under the method of offer of the corporate bonds; or
(5) the company has suffered continuous losses during the most recent two years.
Article 61: If a company is in the situation described in Item (1) or (4) of the preceding article and the consequences are verified to be serious, or if a company is in the situation described in Item (2), (3) or (5) of the preceding article and fails to eliminate the same within a specified time limit, the stock exchange shall decide to terminate the listing and trading of the company's bonds.
If a company is dissolved or declared bankrupt, the stock exchange shall terminate the listing and trading of the company's bonds.
Article 62: An application for a review may be submitted to the review organisation established by the stock exchange in the event of dissatisfaction with a decision by the stock exchange to suspend or terminate a listing, or not to grant a listing.
Section Three: Continuing disclosure
Article 63: The information disclosed in accordance with the law by issuers and listed companies must be true, accurate and complete and may not contain false or misleading statements or material omissions.
Article 64: The share prospectus or the method of offer of corporate bonds shall be published where shares are publicly offered in accordance with the law upon check and approval by the State Council's securities regulatory authority or where corporate bonds are publicly offered in accordance with the law upon check and approval by the department authorised by the State Council. When new shares or corporate bonds are publicly offered in accordance with the law, financial accounting reports shall also be published.
Article 65: Within two months of the date of conclusion of the first half of each financial year, listed companies or companies whose bonds have been listed for trading shall submit to the State Council's securities regulatory authority and the stock exchange an interim report with the following contents, and publish the same:
(1) the company's financial accounting reports and business situation;
(2) major litigation involving the company;
(3) the particulars of any changes in the shares or corporate bonds already issued;
(4) any major matters submitted for consideration by the shareholders' general meeting; and
(5) other matters specified by the State Council's securities regulatory authority.
Article 66: Within four months of the last day of each financial year, listed companies or companies whose bonds have been listed for trading shall submit to the State Council's securities regulatory authority and the stock exchange an annual report with the following contents, and publish the same:
(1) the company's general circumstances;
(2) the company's financial accounting reports and business situation;
(3) the r¨¦sum¨¦s and the details of the shareholdings of the directors, supervisors and senior officers;
(4) the details of shares and corporate bonds already issued, including the name list of the 10 shareholders who hold the largest number of shares in the company and the number of shares held by them;
(5) the de facto controller of the company; and
(6) other matters specified by the State Council's securities regulatory authority.
Article 67: If a major event that could have a relatively large effect on the trading price of a company's shares arises and investors are not yet aware thereof, the listed company shall promptly submit an ad hoc report to the State Council's securities regulatory authority and the stock exchange on the details of the major event and publicly announce the same, explaining the reason for the event, the current situation and the possible legal consequences that may arise.
The circumstances set forth below shall constitute major events as specified in the preceding paragraph:
(1) a major change in the company's business policies or scope of business;
(2) a decision by the company concerning a major investment or major asset purchase;
(3) conclusion by the company of a major contract that may have a major effect on the company's assets, liabilities, rights, interests or business results;
(4) incurrence by the company of a major debt or default on a major debt;
(5) incurrence by the company of a major deficit or major loss;
(6) a major change in the external production or business conditions of the company;
(7) a change in the directors, not less than one third of the supervisors or the manager of the company;
(8) a relatively large change in the shareholding of, or control of the company by, a shareholder holding at least 5% of the Company's shares or the de facto controller of the company;
(9) a decision to reduce the company's capital, merge, divide or dissolve the company or file for bankruptcy;
(10) a major lawsuit involving the company, or a resolution of the shareholders' general meeting or board of directors is revoked or declared invalid in accordance with the law;
(11) the company is suspected of committing a criminal offence and the judicial authorities have placed the case on the docket and are investigating, or a director, supervisor or senior officer of the company is suspected of committing a criminal offence and the judicial authorities have taken enforcement measures; and
(12) other matters specified by the State Council's securities regulatory authority.
Article 68: A listed company's directors and senior officers shall sign written confirmation opinions in respect of the regular reports of the company.
The supervisory board of a listed company shall review the regular reports of the company prepared by the board of directors and issue written comments on its review thereof.
The directors, supervisors and senior officers of a listed company shall ensure that the information disclosed by the company is true, accurate and complete.
Article 69: If the share prospectus, method of offer of corporate bonds, financial accounting reports, listing report documents, annual report, interim report, ad hoc reports or other disclosed information published by an issuer or listed company contain false or misleading statements or material omissions, thereby causing investors to incur a loss in securities trading, the issuer or the listed company shall be liable for damages. The issuer's or listed company's directors, supervisors, senior officers and other persons directly responsible as well as the sponsor and the securities company acting as underwriter shall be jointly and severally liable with the issuer or listed company, unless he/she/it is able to establish that he/she/it was not at fault. If the issuer's or listed company's controlling shareholder or de facto controller is at a fault, it shall be jointly and severally liable with the issuer or listed company.
Article 70: Information that must be disclosed according to law shall be published in the media designated by the State Council's securities regulatory authority and shall also be made available for review by the public at the company's domicile and stock exchange.
Article 71: The State Council's securities regulatory authority shall supervise the release of annual reports, interim reports, ad hoc reports and announcements of listed companies, the allotment of new shares or rights issues of listed companies, and the acts of listed companies' controlling shareholders and parties with an obligation to disclose information.
The securities regulatory authority, the stock exchange, the sponsor, the securities company acting as underwriter, and relevant persons may not divulge the contents of company announcements mandated by laws or administrative regulations before such announcements are made.
Article 72: If a stock exchange decides to suspend or terminate the listing and trading of a security, it shall promptly announce the same and report the same to the State Council's securities regulatory authority for the record.
Section Four: Prohibited trading acts
Article 73: It is forbidden for informed persons with insider information on the trading of securities or persons who have illegally obtained insider information to use such information to engage in securities trading activities.
Article 74: Informed persons with insider information on the trading of securities include:
(1) the directors, supervisors and senior officers of issuers;
(2) shareholders who hold at least 5% of the shares of a company and their directors, supervisors and senior officers, and the de facto controller of a company and its directors, supervisors and senior officers;
(3) the companies in which an issuer has a controlling interest and their directors, supervisors and senior officers;
(4) persons who have access to insider information of a company by virtue of their positions in the company;
(5) the working personnel of the securities regulatory authority, and other persons who have a hand in the administration of the offering and trading of securities by virtue of their statutory duties;
(6) the relevant personnel of sponsors, securities companies acting as underwriters, stock exchanges, securities depository and clearing institutions and securities service institutions; and
(7) other persons specified by the State Council's securities regulatory authority.
Article 75: Insider information is information that, in the course of securities trading, has not yet been disclosed and concerns the company's business or financial affairs or may have a major effect on the market price of the company's securities.
The following information is insider information:
(1) the major events described in the second paragraph of Article 67 hereof;
(2) company plans concerning distribution of dividends or increase of registered capital;
(3) major changes in the company's equity structure;
(4) major changes in security for the company's debts;
(5) any single mortgage, sale or write-off of a major asset used in the business of the company exceeding 30% of the said asset;
(6) potential liability for major damages to be assumed in accordance with the law as a result of an act committed by a company's director(s), supervisor(s) or senior officer(s);
(7) plans concerning the takeover of listed companies; and
(8) other important information determined by the State Council's securities regulatory authority to have a marked effect on securities trading prices.
Article 76: Informed persons with insider information on the trading of securities and persons who have illegally obtained insider information may not purchase or sell the securities of the relevant company, divulge such information or recommend to others that they purchase or sell the relevant securities until the insider information has been made public.
Where otherwise provided in this Law in respect of the purchase of shares of a listed company by a natural person, legal person or other organisations that holds, or by virtue of an agreement or other arrangement jointly holds with another, at least 5% of the shares of the company, such provisions shall apply.
If an act of insider trading causes investors to incur a loss, the person so acting shall be liable for damages in accordance with the law.
Article 77: It is prohibited for anyone to manipulate the securities market in any of the following ways:
(1) carrying out combined or successive sales or purchases by building up an advantage in terms of funds or shareholdings or using one's advantage in terms of information, thereby manipulating the price or volume of securities traded, whether independently or in collusion;
(2) collaborating with another person to mutually trade securities at a pre-arranged time, price and method, thereby affecting the price or volume of securities traded;
(3) conducting securities transactions between accounts actually controlled by oneself, thereby affecting the price or volume of securities traded; or
(4) manipulating the securities market by other methods.
If an act of securities market manipulation causes investors to incur a loss, the person so acting shall be liable for damages in accordance with the law.
Article 78: It is prohibited for working personnel of the state, working personnel of the media and relevant persons to fabricate and disseminate false information, thereby disturbing the order of the securities market.
It is prohibited for stock exchanges, securities companies, securities depository and clearing institutions, securities service institutions, securities associations and the securities regulatory authority, and their working personnel, to make false statements or give misleading information in the course of securities trading.
Securities market information disseminated by any mass medium must be truthful and objective. All mass media are prohibited from disseminating misleading information on the securities market.
Article 79: It is prohibited for securities companies and their working personnel to commit the following fraudulent acts that are detrimental to the interests of their clients:
(1) purchase or sale of securities on behalf of a client in violation of the client's instructions;
(2) failure to provide a client with written confirmation of a transaction within the prescribed period;
(3) misappropriation of securities entrusted by a client for purchase or sale, or of funds in a client's account;
(4) purchase or sale of securities on behalf of a client without instructions from the client, or purchase or sale of securities on one's own account under a client's name;
(5) enticing a client to make an unnecessary purchase or sale of securities in order to obtain commission revenue;
(6) using the media or other means to provide or disseminate information that is false or misleads investors; or
(7) other acts contrary to a client's authentic declaration of intention or acts detrimental to a client's interests.
If an act of defrauding clients causes clients to incur a loss, the persons so acting shall be liable for damages in accordance with the law.
Article 80: It is prohibited for a legal person to illegally use another's account to engage in securities trading. It is forbidden for a legal person to lend out its or another's securities account.
Article 81: Channels for the entry of funds into the market shall be expanded in accordance with the law, but the illegal flow of funds into the stock market is prohibited.
Article 82: It is prohibited for anyone to misappropriate public funds to purchase or sell securities.
Article 83: When a state-owned enterprise or an enterprise in which state-owned assets account for a controlling interest purchases or sells listed and traded shares, it must comply with relevant state provisions.
Article 84: If stock exchanges, securities companies, securities depository and clearing institutions, securities service institutions and their working personnel discover any prohibited trading acts in the course of securities trading, they shall timely report such acts to the securities regulatory authority.
Part Four: Takeover of listed companies
Article 85: Investors may take over a listed company by means of takeover by offer, takeover by agreement or other lawful methods.
Article 86: If, through securities transactions on a stock exchange, an investor's holding or, by virtue of an agreement or other arrangement, its joint holding with another of the issued shares of a listed company reaches 5%, it shall submit a written report to the State Council's securities regulatory authority and the stock exchange, notify the listed company and make an announcement within three days of the date of the occurrence of such event. During the aforementioned period, it may not make any further purchase or sale of the relevant listed company's shares.
After an investor's holding or, by virtue of an agreement or other arrangement, its joint holding with another of the issued shares of a listed company reaches 5%, it shall, in accordance with the preceding paragraph, submit a report and make an announcement whenever the percentage of the issued shares of the relevant listed company that it holds increases or decreases by 5%. During the reporting period and for two days after the report and announcement, it may not make any further purchase or sale of the relevant listed company's shares.
Article 87: Written reports and announcements made in accordance with the preceding article shall include the following:
(1) the name and domicile of the shareholder;
(2) the name and amount of stock held; and
(3) the date on which the shareholding or the increase or decrease in the shareholding reached the statutory percentage.
Article 88: If, through securities transactions on a stock exchange, an investor's holding or, by virtue of an agreement or other arrangement, its joint holding with another of the issued shares of a listed company reaches 30% and it continues to buy up such shares, it shall, in accordance with the law, issue to all of the listed company's shareholders a takeover offer for all or part of the listed company's shares.
A takeover offer to acquire part of the listed company's shares shall specify that, if the number of shares that the shareholders of the targeted company undertake to sell exceeds the target number of shares to be acquired, the acquirer shall effect the acquisition pro rata.
Article 89: When issuing a takeover offer pursuant to the preceding article, the acquirer must announce a report on the takeover of the listed company. The report shall contain the following particulars:
(1) the name and domicile of the acquirer;
(2) the decision of the acquirer concerning the takeover;
(3) the name of the listed company targeted;
(4) the purpose of the takeover;
(5) a detailed description of the shares bought up and the number of shares scheduled to be bought up;
(6) the term and price of the takeover;
(7) the amount and guaranteed availability of the funds required for the takeover; and
(8) the ratio between the total number of issued shares of the target company and the number of such shares held at the time of announcement of the report on the takeover of the listed company.
The acquirer shall simultaneously submit a copy of the report on the takeover of the listed company to the stock exchange.
Article 90: The term of takeover as specified in a takeover offer shall be not less than 30 and not more than 60 days.
Article 91: During the period of time for acceptance as fixed in a takeover offer, the acquirer may not revoke its takeover offer. If the acquirer needs to amend the takeover offer, it must make an announcement specifying the specific amended matters in a timely manner.
Article 92: The conditions of takeover set forth in the takeover offer shall apply to all shareholders of the target company.
Article 93: In the case of takeover by offer, during the term of the takeover, the acquirer may not sell shares in the target company, nor may it purchase shares in the target company by any method other than that prescribed in, or on any conditions other than those of the offer.
Article 94: In the case of takeover by agreement, the acquirer may effect the share transfer by entering into an agreement with the shareholders of the target company, as prescribed in laws and administrative regulations.
When a listed company is taken over by agreement, the acquirer must, within three days after the agreement is reached, submit a written report on the takeover agreement to the State Council's securities regulatory authority and the stock exchange, and make an announcement.
The takeover agreement may not be performed until the announcement has been made.
Article 95: In the case of takeover by agreement, the parties to the agreement may on an ad hoc basis entrust a securities depository and clearing institution with custody of the shares transferred pursuant to the agreement and with deposit of the funds with the designated bank.
Article 96: If a takeover is effected by agreement and the acquirer's acquisition or, by virtue of an agreement or other arrangement, its joint acquisition with another of the issued shares of a listed company reaches 30%, and it continues to buy up such shares, it shall issue to all of the listed company's shareholders a takeover offer for all or part of the listed company's shares, unless the State Council's securities regulatory authority exempts it from making such offer.
If an acquirer acquires the shares of a listed company by way of an offer in accordance with the preceding paragraph, it shall abide by Articles 89 to 93 hereof.
Article 97: If, after the expiration of the takeover period, the spread of the equity of the acquired company ceases to satisfy listing conditions, the listing and trading of such listed company's shares shall be terminated by the stock exchange in accordance with the law. The other shareholders who still hold shares of the acquired company shall have the right to sell their shares to the acquirer on terms equivalent to that of the takeover offer, and the acquirer shall acquire the same.
If, upon completion of the takeover, the acquired company no longer meets the criteria for a company limited by shares, it shall change its enterprise form in accordance with the law.
Article 98: During the takeover of a listed company, the shares in the target listed company that are held by the acquirer may not be transferred for 12 months following the completion of the takeover.
Article 99: After the conclusion of the takeover, the acquirer and the acquired company shall merge and the company shall be dissolved. The existing shares of the dissolved company shall be replaced by the acquirer in accordance with the law.
Article 100: After the conclusion of the takeover, the acquirer shall, within 15 days, report the particulars of the takeover to the State Council's securities regulatory authority and the stock exchange, and make an announcement.
Article 101: The acquisition of the shares of a listed company held by an investment organisation authorised by the state shall be subject to the approval of the competent department in accordance with the provisions of the State Council.
The State Council's securities regulatory authority shall formulate the specific measures for the takeover of listed companies in line with the principles of this Law.
Part Five: Stock exchanges
Article 102: A stock exchange is a legal person that provides a venue and the facilities for the centralised trading of securities, organises and supervises securities trading and implements self-regulatory management.
The establishment and dissolution of stock exchanges shall be decided on by the State Council.
Article 103: To establish a stock exchange, a constitution must be formulated.
The formulation and amendment of the constitution of a stock exchange shall be subject to the approval of the State Council's securities regulatory authority.
Article 104: Stock exchanges must include the words 'stock exchange' in their names. No other work unit and no individual may use the name 'stock exchange' or a similar name.
Article 105: The fee revenue that stock exchanges may dispose of by themselves shall first be used to ensure the normal operation and gradual improvement of the stock exchange and its facilities.
The property accumulated by a stock exchange that implements a membership system shall belong to its members. The rights and interests in the stock exchange shall be enjoyed jointly by its members. Accumulated property may not be distributed to the members while the stock exchange is in existence.
Article 106: A stock exchange shall have a board of governors.
Article 107: A stock exchange shall have a general manager, who shall be appointed and removed by the State Council's securities regulatory authority.
Article 108: The persons described in Article 146 of the PRC Company Law and the following persons may not serve as responsible persons of stock exchanges:
(1) responsible persons of stock exchanges or securities depository and clearing institutions, and directors, supervisors and senior officers of securities companies, who were removed from office due to a violation of the law or a breach of discipline, where not more than five years have elapsed since the date of their removal from office; and
(2) lawyers, certified accountants, and professional personnel of investment consultancies, financial consultancies, credit rating agencies, asset appraisal organisations or verification organisations, whose qualifications were cancelled due to a violation of the law or a breach of discipline, where not more than five years have elapsed since the date of cancellation.
Article 109: Working personnel of stock exchanges, securities depository and clearing institutions, securities service institutions or securities companies who were dismissed for violating the law or breaching discipline, and working personnel of state authorities who were punished by dismissal, may not be employed as working personnel of stock exchanges.
Article 110: Only members of a stock exchange may enter that stock exchange to participate in centralised trading.
Article 111: Investors shall sign a securities trading authorisation agreement with a securities company, open a securities trading account with the company, and instruct, in writing, by telephone or otherwise, the company to purchase and sell securities on their behalf.
Article 112: A securities company shall, as instructed by an investor, issue trading orders in accordance with the rules of the stock exchange, participate in centralised trading in the stock exchange and bear the commensurate settlement liability based on the results of the concluded transactions. The securities depository and clearing institution shall effect settlement of securities and funds with the securities company based on the results of the concluded transactions and in accordance with the settlement rules, and carry out for the securities company's clients the procedures for registration of the change in ownership of the securities.
Article 113: Stock exchanges shall ensure that the centralised trading is organised fairly and shall announce real-time quotes concerning the securities trading. They shall compile securities market quotes tables for each day of trading, and announce the same.
Without the permission of a stock exchange, no work units or individuals may release real-time quotes concerning the securities trading.
Article 114: If a sudden event affecting the normal conduct of securities trading occurs, stock exchanges may effect a technical suspension of trading. Stock exchanges may decide to temporarily suspend the market if a sudden event of force majeure occurs or in order to protect the normal order of securities trading.
When stock exchanges effect a technical suspension of trading or decide to provisionally suspend the market, they must report the same to the State Council's securities regulatory authority in a timely manner.
Article 115: Stock exchanges shall implement real-time monitoring of the securities trading, and shall report any unusual trading as required by the State Council's securities regulatory authority.
Stock exchanges shall supervise the disclosure of information by listed companies and relevant parties with an obligation to disclose information to ensure that they accurately disclose information in accordance with the law in a timely manner.
A stock exchange may, as required, limit trading in a securities account that is experiencing major unusual transactions and shall report the same to the State Council's securities regulatory authority for the record.
Article 116: Stock exchanges shall allocate a certain percentage of their transaction levies, membership levies and seat levies to establish a risk fund. The risk fund shall be managed by the board of governors of the stock exchange.
The specific percentages of allocations to, and measures for the use of, the risk fund shall be specified by the State Council's securities regulatory authority in conjunction with the State Council's finance department.
Article 117: Stock exchanges shall deposit the risk fund collected by them in dedicated accounts with their banks, and may not use the same without authorisation.
Article 118: Stock exchanges shall, pursuant to securities laws and administrative regulations, formulate listing rules, trading rules, membership rules and other relevant rules, and submit the same to the State Council's securities regulatory authority for approval.
Article 119: If, in carrying out duties related to securities trading, the responsible persons and other working personnel of stock exchanges discover that a material relationship with themselves or any of their relatives is involved, they shall withdraw.
Article 120: The transaction results of trading that has been conducted pursuant to trading rules formulated in accordance with the law may not be changed. Traders may not be released from the civil liability incurred as a result of their violation of rules during trading. Gains obtained from trading against the rules shall be dealt with pursuant to the relevant provisions.
Article 121: If persons engaged in securities trading inside a stock exchange violate the trading rules of the stock exchange, the stock exchange shall impose disciplinary punishments. If the circumstances are serious, the offenders' qualifications shall be revoked and they shall be barred from entering the exchange to carry out securities trading.
Part Six: Securities companies
Article 122: Establishment of securities companies must be subject to the examination and approval of the State Council's securities regulatory authority. No work units or individuals may engage in the securities business without the approval of the State Council's securities regulatory authority.
Article 123: For the purposes of this Law, the term 'securities company' means a limited liability company or company limited by shares established in accordance with the PRC Company Law and this Law and that engages in the securities business.
Article 124: To establish a securities company, the following conditions shall be satisfied:
(1) having articles of association that comply with laws and administrative regulations;
(2) the main shareholders having a capacity for sustained profitability, good creditworthiness, no record of a major violation of laws or regulations during the most recent three years and net assets of not less than Rmb200 million;
(3) having registered capital complying with this Law;
(4) the directors, supervisors and senior officers having the qualifications for their positions, and the working personnel being qualified to engage in the securities business;
(5) having sound risk management and internal control systems;
(6) having a compliant place of business and business facilities; and
(7) satisfying other conditions specified in laws and administrative regulations and by the State Council's securities regulatory authority as approved by the State Council.
Article 125: Subject to the approval of the State Council's securities regulatory authority, a securities company may engage in some or all of the following businesses:
(1) securities brokerage business;
(2) securities investment consulting;
(3) provision of financial advisory services relating to securities trading and securities investment activities;
(4) securities underwriting and sponsorship;
(5) securities business for its own account;
(6) securities asset management; and
(7) other securities businesses.
Article 126: Securities companies must carry the words "证券有限责任公司"1 or "证券股份有限公司"2 in their names.
Article 127: Securities companies that engage in the businesses specified in Items (1) to (3) of Article 125 hereof shall have minimum registered capital of Rmb50 million; those engaging in any one of the businesses specified in Items (4) to (7) shall have minimum registered capital of Rmb100 million; and those engaging in two or more of the businesses specified in Items (4) to (7) shall have minimum registered capital of Rmb500 million. The registered capital of a securities company shall be paid-in capital.
The State Council's securities regulatory authority may revise the minimum registered capital based on the principle of prudential regulation and the degree of risk attaching to each business, provided that the amounts may not be lower than those specified in the preceding paragraph.
Article 128: The State Council's securities regulatory authority shall examine an application for the establishment of a securities company in accordance with the statutory conditions and the statutory procedure and the principle of prudential regulation and render its decision on whether or not to grant approval within six months of the date of acceptance of such application, and notify the applicant. If it withholds its approval, it shall explain the reason therefor.
If an application for the establishment of a securities company is approved, the applicant shall apply for registration of establishment to the company registrar within the prescribed period of time and collect the business licence.
A securities company shall apply to the State Council's securities regulatory authority for a securities business operating permit within 15 days of the date of collecting its business licence. A securities company may not engage in the securities business until it has obtained its securities business operating permit.
Article 129: The establishment, takeover and closing down of branches and sub-branches by a securities company, the amendment of its scope of business, change in its registered capital, change in its shareholders who hold at least 5% of its equity or de facto controller, amendment of the important provisions of its articles of association, its merger, division, change in the form of the company, cessation of operations, dissolution and bankruptcy shall be subject to the approval of the State Council's securities regulatory authority.
The establishment or takeover of, or taking of an equity interest in, a securities business organisation abroad by a securities company shall be subject to the approval of the State Council's securities regulatory authority.
Article 130: The State Council's securities regulatory authority shall specify such risk control indicators of securities companies as their net capital, ratio of net capital to liabilities, ratio of net capital to net assets, ratio of net capital to the scale of such business as business for their account, underwriting business, asset management business, etc., ratio of liabilities to net assets and ratio of operating assets to operating liabilities.
A securities company may not provide financing to, or security for, its shareholders or affiliated persons of its shareholders.
Article 131: The directors, supervisors and senior officers of securities companies shall be with integrity, honest and of good character, be familiar with securities laws and administrative regulations, have the operating and management skills required to perform their duties and have obtained the qualifications for their positions as approved by the State Council's securities regulatory authority before assuming their positions.
The persons described in Article 146 of the PRC Company Law and the following persons may not serve as the directors, supervisors or senior officers of securities companies:
(1) responsible persons of stock exchanges or securities depository and clearing institutions, and directors, supervisors and senior officers of securities companies, who were removed from office due to a violation of the law or a breach of discipline, where not more than five years have elapsed since the date of their removal from office;
(2) lawyers, certified accountants, and professional personnel of investment consultancies, financial consultancies, credit rating agencies, asset appraisal organisations or verification organisations, whose qualifications were cancelled due to a violation of the law or a breach of discipline, where not more than five years have elapsed since the date of cancellation.
Article 132: Working personnel of stock exchanges, securities depository and clearing institutions, securities service institutions or securities companies who were dismissed for violating the law or breaching discipline, and working personnel of state authorities who were punished by dismissal, may not be employed as working personnel of securities companies.
Article 133: Working personnel of state authorities, and other persons prohibited by laws and administrative regulations from concurrently holding positions in companies, may not concurrently hold positions in securities companies.
Article 134: The state will establish a securities investor protection fund. The securities investor protection fund shall be composed of funds paid in by securities companies and other funds raised in accordance with the law. The specific measures for raising, management and use of such fund shall be specified by the State Council.
Article 135: Securities companies shall make allocations to a trading risk reserve from their annual after-tax profits. The reserve shall be used to make up losses from securities trading. The specific allocation percentage shall be specified by the State Council's securities regulatory authority.
Article 136: A securities company shall establish sound internal control systems and effective Chinese walls so as to guard against conflicts of interest between the company and clients and between different clients.
A securities company must keep its securities brokerage business, securities underwriting business, securities business for its own account and securities asset management business separate, and may not mix their operations together.
Article 137: Business on the own account of a securities company must be conducted in its own name. Such business may not be conducted in the name of another or in the name of an individual.
Business on the own account of a securities company must use the company's own funds and legally raised funds.
No securities company may lend its account for business carried out on own account to another for use.
Article 138: Securities companies shall have the lawful right to operate independently, and their lawful operations shall not be interfered with.
Article 139: The transaction settlement funds of clients shall be deposited with a commercial bank and separate accounts shall be opened and managed in each client's name. The specific measures and implementing steps shall be specified by the State Council.
A securities company may not include the transaction settlement funds and securities of clients among its own property. It is forbidden for any work unit or individual to misappropriate in any manner the transaction settlement funds and securities of clients. When a securities company goes bankrupt or is liquidated, the transaction settlement funds and securities of clients shall not be deemed part of the bankruptcy property or liquidation property. The transaction settlement funds and securities of a client may not be placed under seal, frozen, seized or have enforcement measures taken in respect thereof for a reason other than that of the debts of the client itself or other circumstance specified by law.
Article 140: When handling brokerage business, securities companies shall make available uniform printed securities sale and purchase instruction forms for use by instructing parties. If instructions are given in other ways, a record must be kept thereof.
The records of clients' instructions to purchase or sell securities shall be kept by the securities company for the prescribed period, irrespective of whether or not any transactions are concluded.
Article 141: When a securities company receives an instruction to purchase or sell securities, it shall purchase or sell the securities as an agent in accordance with the trading rules based on the securities' name, the purchase or sales quantity, the bidding method, the price range, etc. stated on the instruction form and record the transaction truthfully. After completion of the transaction, a transaction completion report shall be prepared in accordance with provisions and delivered to the client.
Account statements confirming trading acts and their transaction results that are drawn up in the course of securities trading must be truthful. Such statements shall be verified on a transaction by transaction basis by an examiner other than the person handling the transaction, in order to ensure that the book securities balance is the same as the number of securities actually held.
Article 142: The offering of margin services by a securities company to clients for the purchase and sale of securities shall be carried out in accordance with the provisions of the State Council and shall be subject to the approval of the State Council's securities regulatory authority.
Article 143: When handling brokerage business, securities companies may not accept blanket authorisation to decide on the purchase or sale of securities, choose the types of securities or decide on the quantities to be purchased or sold or the purchase or sales price.
Article 144: Securities companies may not give any form of commitment to clients concerning earnings from the purchase or sale of securities or compensation for losses from the purchase or sale of securities.
Article 145: Securities companies and their working personnel may not privately accept instructions from a client to purchase or sell securities that has not gone through the company's place of business established in accordance with the law.
Article 146: If, in the course of securities trading activities, a member of the working personnel of a securities company violates the trading rules on the instructions of his/her securities company or by using his/her position, the securities company to which such person belongs shall bear full liability therefor.
Article 147: A securities company shall duly preserve clients' account opening information, instruction records, trading records and information relating to internal management and business operations. It is forbidden for anyone to conceal, forge, alter or destroy the same. The period of preservation of the aforementioned information shall not be less than 20 years.
Article 148: A securities company shall submit to the State Council's securities regulatory authority operating and management information and data on its business, finances, etc. The State Council's securities regulatory authority has the authority to require a securities company, its shareholders and de facto controller to provide relevant information and data within a designated period of time.
The information and data submitted or provided to the State Council's securities regulatory authority by a securities company, its shareholders and de facto controller must be true, accurate and complete.
Article 149: When it deems necessary, the State Council's securities regulatory authority may appoint an accounting firm or asset appraisal institution to conduct an audit or appraisal of a securities company's financial position, internal controls or asset value. The specific measures therefor shall be formulated by the State Council's securities regulatory authority jointly with relevant competent departments.
Article 150: If a securities company's net capital or other risk control indicators fail to comply with provisions, the State Council's securities regulatory authority shall order it to rectify the matter within a specified period of time. If it fails to rectify the matter within the specified period of time, or its acts seriously threaten the stable operation of the securities company or harm the lawful rights and interests of clients, the State Council's securities regulatory authority may, depending on the circumstances, take the following measures against it:
(1) placing restrictions on its business activities, ordering it to suspend part of its business or halting the approval of new business;
(2) halting the approval of the establishment or takeover of branches and sub-branches of a commercial nature;
(3) placing restrictions on its distribution of dividends or placing restrictions on the payment of remuneration or provision of benefits to directors, supervisors and senior officers;
(4) placing restrictions on its transfer of property or encumbrance of its property with other rights;
(5) ordering the replacement of directors, supervisors and/or senior officers or placing restrictions on their rights;
(6) ordering the controlling shareholder to transfer equity or placing restrictions on the exercise by the relevant shareholder of its shareholder rights; and
(7) revoking the permit for the relevant business.
Once a securities company has completed rectification, it shall submit a report to the State Council's securities regulatory authority. If, after an acceptance check, the company is found to comply with the relevant risk control indicators, the State Council's securities regulatory authority shall, within three days of the date of completion of the acceptance check, lift the relevant measures specified in the preceding paragraph that it imposed.
Article 151: If a shareholder of a securities company has made a fraudulent capital contribution or surreptitiously withdrawn its capital contribution, the State Council's securities regulatory authority shall order it to rectify the matter within a specified period of time, and may order it to transfer the equity of the securities company that it holds.
Until the shareholder mentioned in the preceding paragraph has rectified its violation of the law as required or, in addition to that, transferred the equity of the securities company that it holds, the State Council's securities regulatory authority may place restrictions on its shareholder rights.
Article 152: If a director, supervisor or senior officer of a securities company fails to act with due diligence, causing the securities company to commit a major violation of laws or regulations or exposing it to a material risk, the State Council's securities regulatory authority may revoke his/her qualifications for his/her position and order the company to replace him/her.
Article 153: If a securities company operates in violation of the law or is exposed to a material risk, thereby seriously threatening the order of the securities market or harming the interests of investors, the State Council's securities regulatory authority may take such regulatory measures against it as ordering it to suspend operations and undergo rectification, designating another institution to take control of it, imposing receivership or closing it down.
Article 154: While a securities company has been ordered to suspend operations and is undergoing rectification, under control of a designated institution in accordance with the law, under receivership, undergoing liquidation or exposed to a material risk, subject to the approval of the State Council's securities regulatory authority, the following measures may be taken against the directors, supervisors and senior officers of the securities company who are directly responsible and other persons directly responsible:
(1) by notifying the border control authority to prevent them from leaving the country in accordance with the law;
and/or
(2) by applying to the judicial authority to prohibit their removing, transferring or otherwise disposing of property or encumbering their property with other rights.
Part Seven: Securities depository and clearing institutions
Article 155: A securities depository and clearing institution is a non-profit legal person that provides centralised registration, deposit and clearing services for securities transactions.
The establishment of securities depository and clearing institutions shall be subject to approval by the State Council's securities regulatory authority.
Article 156: To be established, a securities depository and clearing institution shall meet the following conditions:
(1) it has its own funds of not less than Rmb200 million;
(2) it has the necessary venue and facilities for securities registration, deposit and clearing services;
(3) its main management personnel and working personnel are qualified to engage in the securities business; and
(4) other conditions specified by the State Council's securities regulatory authority.
The names of securities depository and clearing institutions shall carry the words "证券登记结算"3 in their names.
Article 157: Securities depository and clearing institutions shall perform the following functions:
(1) the establishment of securities accounts and clearing accounts;
(2) the deposit and transfer of ownership of securities;
(3) the registration of the names of the holders of securities;
(4) the settlement of listed securities traded on the stock exchange;
(5) the allotment of securities rights and interests upon entrustment by the issuer;
(6) the handling of inquiries concerning the above-mentioned businesses; and
(7) other businesses approved by the State Council's securities regulatory authority.
Article 158: A nationwide, centralised, unified method of operation shall be used for the registration and clearing of securities.
The articles of association and business rules of securities depository and clearing institutions shall be formulated in accordance with the law and be subject to approval by the State Council's securities regulatory authority.
Article 159: All of the securities held by a securities holder shall, while listed for trading, be deposited with a securities depository and clearing institution.
A securities depository and clearing institution may not misappropriate the securities of clients.
Article 160: Securities depository and clearing institutions shall furnish the securities issuers with the name lists of, and relevant information concerning, the holders of their securities.
On the basis of the results of securities registration and clearing, securities depository and clearing institutions shall confirm the fact that particular securities are held by particular holders and provide registered information on the holders of the securities.
Securities depository and clearing institutions shall ensure the truthfulness, accuracy and completeness of the name lists of the holders of securities and the records of registration of change in ownership. Such name lists and records may not be concealed, forged, altered or destroyed.
Article 161: Securities depository and clearing institutions shall adopt the following measures to ensure the normal operation of business:
(1) to have the necessary service equipment and comprehensive data security and protection measures;
(2) to have established comprehensive management systems for business, financial affairs and security, etc.; and
(3) to have established comprehensive risk management systems.
Article 162: Securities depository and clearing institutions shall properly preserve the original evidence and the relevant documents and data relating to registration, deposit and clearing. The period of preservation shall be not less than 20 years.
Article 163: A securities depository and clearing institution shall establish a securities clearing risk fund that shall be used as an advance against, or to make up for, losses incurred by the securities depository and clearing institution due to defaults in delivery, technical failures, operational errors or force majeure.
Allocations to the securities clearing risk fund shall be made from the securities depository and clearing institution's business revenues and gains and may be paid by clearing participants as a certain percentage of their securities trading volume.
The measures for the collection and management of a securities clearing risk fund shall be specified by the State Council's securities regulatory authority in concert with the State Council's finance department.
Article 164: The money in a securities clearing risk fund shall be deposited in a dedicated account at a designated bank for special management.
After a securities depository and clearing institution has paid compensation from the securities clearing risk fund, it shall seek recourse against the responsible person(s).
Article 165: Applications by securities depository and clearing institutions for their dissolution shall be subject to approval by the State Council's securities regulatory authority.
Article 166: When an investor appoints a securities company to conduct securities transactions, it shall apply to open a securities account. The securities depository and clearing institution shall open a securities account for the investor in its name in accordance with provisions.
When an investor applies to open an account, lawful documentation evidencing status as a citizen of China or status as a Chinese legal person, unless otherwise specified by the state, must be provided.
Article 167: When a securities depository and clearing institution offers netting services for securities transactions, it shall require clearing participants to deliver in full securities and funds on a delivery versus payment basis and provide a delivery guarantee.
Until completion of delivery, no one may utilise the securities, funds or guarantee used for delivery.
If a clearing participant fails to perform its delivery obligation on time, the securities depository and clearing institution shall have the right to dispose of the property specified in the preceding paragraph in accordance with its business rules.
Article 168: The various settlement funds and securities that a securities depository and clearing institution collects in accordance with its business rules must be deposited into a dedicated settlement account and may only be used for the settlement of completed securities transactions in accordance with its business rules. Enforcement measures may not be taken against such account.
Part Eight: Securities service institutions
Article 169: Investment consultancies, financial consultancies, credit rating agencies, asset appraisal institutions and accounting firms that wish to engage in the securities service business shall be subject to the approval of the State Council's securities regulatory authority and the relevant competent departments.
The measures for the administration of the examination and approval of investment consultancies, financial consultancies, credit rating agencies, asset appraisal institutions and accounting firms that wish to engage in the securities service business shall be formulated by the State Council's securities regulatory authority and the relevant competent departments.
Article 170: The personnel of investment consultancies, financial consultancies and credit rating agencies who engage in the securities service business must have professional securities knowledge and at least two years of experience in the securities business or the securities service business. The standards and administrative measures for the recognition of their qualifications to engage in the securities business shall be formulated by the State Council's securities regulatory authority.
Article 171: When engaging in the securities service business, investment consultancies and their working personnel may not commit any of the following acts:
(1) investing in securities as an agent for a client;
(2) agreeing with a client to share earnings or losses from securities investment;
(3) purchasing or selling the shares of listed companies to which the consultancy provides services;
(4) utilising the media or other means to provide or disseminate information that is false or misleads investors; or
(5) other acts prohibited by laws or administrative regulations.
If an investment consultancy or a member of its working personnel commits any of the acts specified in the preceding paragraph, thereby causing investors to incur a loss, it/he/she shall be liable for damages in accordance with the law.
Article 172: Investment consultancies and credit rating agencies engaged in securities service institutions shall charge service fees in accordance with the standards or charging methods prescribed by the relevant competent departments of the State Council.
Article 173: When a securities service institution prepares and issues an audit report, asset appraisal report, financial advisor report, credit rating report, legal opinion or other such document in connection with such securities business activities as the offering, listing, trading, etc. of securities, it shall act with due diligence, and check and verify that the contents of the documents and materials it relies on are truthful, accurate and complete. If the document prepared and issued by it contains false or misleading statements or material omissions, causing others to incur a loss, it shall bear joint and several liability for damages with the issuer or listed company, unless it is able to establish that it was not at fault.
Part Nine: Securities associations
Article 174: A securities association is a self-regulating organisation for the securities industry and is a social organisation with legal personality.
Securities companies shall join securities associations.
The organ of authority of a securities association shall be the members' general assembly, composed of all of the members.
Article 175: The charter of a securities association shall be formulated by its members' general assembly and submitted to the State Council's securities regulatory authority for the record.
Article 176: A securities association shall perform the following functions:
(1) to educate and lead members to abide by securities laws and administrative regulations;
(2) to safeguard the lawful rights and interests of members according to law and to report members' opinions and requests to the securities regulatory authority;
(3) to collate and process information on securities and provide services to members;
(4) to formulate rules to be complied with by the members, to arrange for vocational training for the working personnel of its members and to organise business exchanges among members;
(5) to mediate in the event of disputes related to the securities business between members or between members and their clients;
(6) to make arrangements for research by members into the development, operation and relevant contents of the securities business;
(7) to supervise and inspect members' acts and to impose disciplinary punishments in accordance with provisions on any member that violates laws, administrative regulations or the charter of the association; and
(8) other functions specified in the charter of the association.
Article 177: A securities association shall have a board of governors. The members of the board of governors shall be elected as prescribed in the charter.
Part Ten: Securities regulatory authority
Article 178: The State Council's securities regulatory authority shall regulate the securities market in accordance with the law. It shall safeguard the order of the securities market and ensure the lawful operation of the same.
Article 179: The State Council's securities regulatory authority shall perform the following functions in the course of regulating the securities market:
(1) to formulate rules and regulations concerning regulation of the securities market according to law and to lawfully exercise its right to carry out examination/check and approval;
(2) to regulate according to law the offering, listing, trading, registration, deposit and clearing of securities;
(3) to regulate according to law the securities business activities of the securities issuers, listed companies, securities companies, securities investment fund management companies, securities service institutions, stock exchanges and securities depository and clearing institutions;
(4) to formulate according to law the qualification standards and code of conduct for persons engaged in the securities business, and to supervise the implementation of the same;
(5) to supervise and inspect according to law the disclosure of information in connection with securities offering, listing and trading;
(6) to direct and supervise the activities of securities associations according to law;
(7) to investigate and deal with violations of laws and administrative regulations concerning the regulation of the securities market, according to law; and
(8) other functions specified in laws and administrative regulations.
The State Council's securities regulatory authority may establish cooperative regulatory mechanisms with the securities regulatory authorities of other countries or regions to implement cross-border regulation.
Article 180: In performing its duties according to law, the State Council's securities regulatory authority shall have the authority to take the following measures:
(1) to conduct onsite inspections of securities issuers, listed companies, securities companies, securities investment fund management companies, securities service institutions, stock exchanges and securities depository and clearing institutions;
(2) to enter premises where a suspected violation of the law has been committed to investigate and collect evidence;
(3) to question the parties concerned and the work units and individuals connected with the event under investigation, and to require them to give explanations concerning matters connected with the event under investigation;
(4) to review and take copies of such information as property title registrations, communication records, etc. relating to the event under investigation;
(5) to review and take copies of the securities trading records, records of registration of change in ownership, financial accounting information and other relevant documents and information of the parties concerned and of the work units and individuals connected with the event under investigation, and to seal up documents and information that might be removed or concealed;
(6) to make inquiries concerning the fund accounts, securities accounts and bank accounts of the parties concerned and of the work units and individuals connected with the event under investigation; with the approval of the main person in charge of the State Council's securities regulatory authority, to freeze or place under seal property involved in the case, such as funds, securities, etc., for which there is evidence establishing that it has been or could be removed or concealed, or important evidence for which there is evidence establishing that it has been or could be concealed, forged or destroyed; and
(7) when investigating major violations of securities laws, such as securities market manipulation, insider trading, etc., it may, with the approval of the main person in charge of the State Council's securities regulatory authority, place restrictions on the purchase and sale of securities by the parties involved in the event under investigation, provided that the period of the restrictions may not exceed 15 trading days; in the event of a complex case, the period may be extended by 15 trading days.
Article 181: When the State Council's securities regulatory authority is conducting a supervisory inspection or an investigation while performing its functions according to law, its supervisory inspectors and investigators may not be less than two and they shall present their lawful credentials and the supervisory inspection or investigation notice. If the supervisory inspectors or investigators number less than two or if they fail to present their lawful credentials and the supervisory inspection or investigation notice, the work unit being inspected or investigated shall have the right to refuse such inspection or investigation.
Article 182: The working personnel of the State Council's securities regulatory authority must perform their duties faithfully, carry out their work in accordance with the law and be impartial and honest. They may not use the advantages of their positions to obtain improper gains, or divulge the trade secrets of relevant work units or individuals of which they have knowledge.
Article 183: When the State Council's securities regulatory authority is performing its functions according to law, the work units and individuals being inspected or investigated shall cooperate and truthfully provide the relevant documents and information. Such work units and individuals may not refuse to cooperate, obstruct inspection or investigation or conceal relevant documents or information.
Article 184: The rules and regulations and the regulatory work systems formulated according to law by the State Council's securities regulatory authority must be made public.
Decisions to impose penalties for illegal acts involving securities that are made by the State Council's securities regulatory authority on the basis of the results of its investigations must be made public.
Article 185: The State Council's securities regulatory authority shall, together with the other finance regulatory authorities of the State Council, establish a mechanism for sharing regulatory information.
When the State Council's securities regulatory authority conducts a supervisory inspection or investigation while performing its functions according to law, the relevant authorities shall cooperate with it.
Article 186: If, during the performance of its functions according to law, the State Council's securities regulatory authority suspects that an illegal act involving securities discovered by it may constitute a criminal offence, it shall hand the case over to the judicial authorities for them to handle.
Article 187: The personnel of the State Council's securities regulatory authority may not serve in an organisation subject to the regulation of the State Council's securities regulatory authority.
Part Eleven: Legal liability
Article 188: If securities are publicly offered or publicly offered in a disguised form without the approval of the statutory authority, an order shall be issued to halt the offer, refund the proceeds raised plus interest at the rate for bank deposits of the same period and a fine of not less than 1% and not more than 5% of the illegal proceeds shall be imposed. A company established through an unauthorised public offer or disguised public offer of securities shall be closed down by the institution or department that legally performs the regulatory functions together with the local people's government at the county level or above. The persons directly in charge and the other persons directly responsible shall be given a warning and fined not less than Rmb30,000 and not more than Rmb300,000.
Article 189: If an issuer that does not satisfy the offer conditions uses fraudulent means to obtain approval for the offer, but the securities have not yet been offered, it shall be fined not less than Rmb300,000 and not more than Rmb600,000. If the securities have been issued, it shall be fined between 1% (inclusive) and 5% of the illegal proceeds. The persons directly in charge and the other persons directly responsible shall be fined not less than Rmb30,000 and not more than Rmb300,000.
If the controlling shareholder or de facto controller of the issuer instructed it to commit the illegal act specified in the preceding paragraph, it shall be penalised in accordance with the provisions of the preceding paragraph.
Article 190: If a securities company underwrites or acts as an agent in the purchasing and selling of securities that were publicly offered without approval, it shall be ordered to halt the underwriting or agency purchasing and selling, its illegal income shall be confiscated and it shall be fined not less than the amount of and not more than five times the illegal income; if there was no illegal income or the illegal income was less than Rmb300,000, it shall be fined not less than Rmb300,000 and not more than Rmb600,000. If investors incurred a loss as a result thereof, it shall be jointly and severally liable for damages with the issuer. The persons directly in charge and the other persons directly responsible shall be given a warning, their qualifications for their positions or qualifications to engage in the securities business shall be revoked and they shall be fined not less than Rmb30,000 and not more than Rmb300,000.
Article 191: If, in underwriting securities, a securities company commits any of the acts set forth below, it shall be ordered to rectify the matter, given a warning, its illegal income shall be confiscated and may be fined not less than Rmb300,000 and not more than Rmb600,000; if the circumstances are serious, its relevant business permit may be suspended or revoked. If other securities underwriters or investors incur a loss as a result thereof, it shall be liable for damages in accordance with the law. The persons directly in charge and the other persons directly responsible shall be given a warning and fined not less than Rmb30,000 and not more than Rmb300,000; if the circumstances are serious, the qualifications for their positions or qualifications to engage in the securities business shall be revoked:
(1) it publishes advertisements or conducts other publicity or promotional activities that are fraudulent or that mislead investors;
(2) it solicits underwriting business through unfair competitive means; or
(3) it commits another act that violates provisions on the securities underwriting business.
Article 192: If a sponsor issues a sponsorship letter that contains false or misleading statements or material omissions, or fails to perform other statutory duties, it shall be ordered to rectify the matter, given a warning, its illegal income shall be confiscated and it shall be fined not less than the amount of and not more than five times its business revenue; if the circumstances are serious, its relevant business permit shall be suspended or revoked. The persons directly in charge and the other persons directly responsible shall be given a warning and fined between not less than Rmb30,000 and not more than Rmb300,000; if the circumstances are serious, the qualifications for their positions or qualifications to engage in the securities business shall be revoked.
Article 193: If an issuer, listed company or other party with an obligation to disclose information fails to disclose information in accordance with provisions, or if the information disclosed contains false or misleading statements or material omissions, an order to rectify the matter shall be issued, a warning shall be given and a fine of not less than Rmb300,000 and not more than Rmb600,000 shall be imposed. The persons directly in charge and the other persons directly responsible shall be given a warning and a fine of not less than Rmb30,000 and not more than Rmb300,000.
If an issuer, listed company or other party with an obligation to disclose information fails to submit relevant reports in accordance with provisions, or if the submitted reports contain false or misleading statements or material omissions, an order to rectify the matter shall be issued, a warning shall be given and a fine of not less than Rmb300,000 and not more than Rmb600,000 shall be imposed. The persons directly in charge and the other persons directly responsible shall be given a warning and a fine of not less than Rmb30,000 and not more than Rmb300,000.
If the controlling shareholder or de facto controller of an issuer, listed company or other party with an obligation to disclose information directed it to commit the illegal acts mentioned in the preceding two paragraphs, such controlling shareholder or de facto controller shall be penalised in accordance with the preceding two paragraphs.
Article 194: If an issuer or listed company changes the purpose of the proceeds from a public offer of securities without authorisation, it shall be ordered to rectify the matter, and the persons directly in charge and the other persons directly responsible shall be given a warning and a fine of not less than Rmb30,000 and not more than Rmb300,000.
If the controlling shareholder or de facto controller of an issuer or listed company directed it to commit the illegal act mentioned in the preceding paragraph, it shall be given a warning and a fine of not less than Rmb300,000 and not more than Rmb600,000. The persons directly in charge and the other persons directly responsible shall be penalised in accordance with the preceding paragraph.
Article 195: If a director, supervisor or senior officer of a listed company or a shareholder that holds at least 5% of the shares of the listed company purchases or sells the company's shares in violation of Article 47 hereof, he/she/it shall be given a warning and may be fined not less than Rmb30,000 and not more than Rmb100,000.
Article 196: If anyone illegally establishes a stock exchange, the people's government at or above the county level shall close down the same, confiscate any illegal income and impose a fine of not more than the amount of and not less than five times the illegal income. If there was no illegal income or the illegal income was less than Rmb100,000, a fine of not less than Rmb100,000 and not more than Rmb500,000 shall be imposed. The persons directly in charge and the other persons directly responsible shall be given a warning and a fine of not less than Rmb30,000 and not more than Rmb300,000.
Article 197: If anyone, without approval, establishes a securities company or illegally operates the securities business, the securities regulatory authority shall halt such activity, confiscate any illegal income and impose a fine of not less than the amount of and not less than five times the illegal income. If there was no illegal income or the illegal income was less than Rmb300,000, a fine of not less than Rmb300,000 and not more than Rmb600,000 shall be imposed. The persons directly in charge and the other persons directly responsible shall be given a warning and a fine of not less than Rmb30,000 and not more than Rmb300,000.
Article 198: If this Law is violated by engaging persons who do not have the qualifications for their positions or are not qualified to engage in the securities business, the securities regulatory authority shall order that the matter be rectified, give a warning and may impose a fine of not less than Rmb100,000 and not more than Rmb300,000. The persons directly in charge shall be given a warning and may be fined not less than Rmb30,000 and not more than Rmb100,000.
Article 199: If anyone who is prohibited by laws or administrative regulations from participating in share trading holds, purchases or sells shares directly, under an assumed name or in the name of another, he/she shall be ordered to dispose of the illegal shareholding in accordance with the law. The illegal income shall be confiscated, and a fine below the value of the shares purchased or sold shall be imposed. If the offender is a member of the working personnel of the state, he/she shall additionally be subjected to administrative penalties in accordance with the law.
Article 200: If a member of the working personnel of a stock exchange, securities company, securities depository and clearing institution, securities service institution or securities association deliberately provides false information or conceals, forges, alters or destroys trading records or deceives investors into purchasing or selling securities, his/her qualifications to engage in the securities business shall be revoked and he/she shall be fined not more than Rmb30,000 and not less than Rmb100,000. If he/she is a member of the working personnel of the state, he/she shall additionally be subjected to administrative penalties in accordance with the law.
Article 201: If a securities service institution or a member of its personnel that issues audit reports, asset appraisal reports, legal opinions or other such documents for offerings, listings and the trading of shares purchases or sells shares in violation of Article 45 hereof, it/he/she shall be ordered to dispose of the illegally held shares in accordance with the law, its/his/her illegal income shall be confiscated and it/he/she shall be fined below the value of the shares purchased or sold.
Article 202: If, prior to the announcement of information that may affect the offering or trading of securities or other information that may have a material impact on the price of securities, an informed person with insider information on securities trading or a person who has illegally obtained insider information purchases or sells such securities, divulges such information or recommends to others to purchase or sell such securities, he/she shall be ordered to dispose of the illegally held securities in accordance with the law, his/her illegal income shall be confiscated and he/she shall be fined not less than the amount of and not more than five times his/her illegal income; if there was no illegal income or if the illegal income was less than Rmb30,000, he/she shall be fined not less than Rmb30,000 and not more than Rmb600,000. If a work unit engages in insider trading, the persons directly in charge and the other persons directly responsible shall also be given a warning and fined not less than Rmb30,000 and not more than Rmb300,000. If a member of the working personnel of a securities regulatory authority engages in insider trading, he/she shall be subjected to stiffer penalties.
Article 203: If this Law is violated by manipulating the securities market, an order to dispose of the illegally held securities in accordance with the law shall be issued, the illegal income shall be confiscated and a fine not less than the amount of and not more than five times the illegal income shall be imposed; if there was no illegal income or if the illegal income was less than Rmb300,000, a fine of not less than Rmb300,000 and not more than Rmb3,000,000 shall be imposed. If a work unit engages in the manipulation of the securities market, the persons directly in charge and the other persons directly responsible shall be given a warning and a fine of not less than Rmb100,000 and not more than Rmb600,000.
Article 204: If the law is violated by purchasing or selling securities during the period when transfer is restricted, an order to rectify the matter shall be issued, a warning shall be given and a fine below the value of the securities purchased or sold shall be imposed. The persons directly in charge and the other persons directly responsible shall be given a warning and a fine of not less than Rmb30,000 and not more than Rmb300,000.
Article 205: If a securities company violates this Law by providing margin services for the purchase and sale of securities by clients, its illegal income shall be confiscated, its relevant business permit shall be suspended or revoked and it shall be fined below the value of the margin. The persons directly in charge and the other persons directly responsible shall be given a warning, their qualifications for their positions or qualifications to engage in the securities business shall be revoked and they shall be fined not less than Rmb30,000 and not more thna Rmb300,000.
Article 206: If the order of a securities market is disturbed by violating the first or third paragraph of Article 78 hereof, the securities regulatory authority shall order that the matter be rectified, confiscate the illegal income and impose a fine of not less than the amount of and not more than five times the illegal income; if there was no illegal income or if the illegal income was less than Rmb30,000, it shall impose a fine of not less than Rmb30,000 and not more than Rmb200,000.
Article 207: If the second paragraph of Article 78 hereof is violated by issuing false statements or misleading information in the course of securities trading activities, an order to rectify the matter shall be issued and a fine of not less than Rmb30,000 and not more than Rmb200,000 shall be imposed. If the offender is a member of the working personnel of the state, he/she shall additionally be subjected to administrative penalties in accordance with the law.
Article 208: If this Law is violated by a legal person opening an account in another's name or using another's account to purchase and sell securities, it shall be ordered to rectify the matter, its illegal income shall be confiscated and it shall be fined not less than the amount of and not more than five times the illegal income; if there was no illegal income or if the illegal income was less than Rmb30,000, it shall be fined not less than Rmb30,000 and not more than Rmb300,000. The persons directly in charge and the other persons directly responsible shall be given a warning and a fine of not less than Rmb30,000 and not more than Rmb100,000.
If a securities company provides its own or another's securities trading account for the illegal act specified in the preceding paragraph, in addition to being penalised in accordance with the preceding paragraph, the persons directly in charge and the other persons directly responsible shall have their qualifications for their positions or qualifications to engage in the securities business revoked.
Article 209: If a securities company violates this Law by conducting the securities business for its own account in the name of another or in the name of an individual, it shall be ordered to rectify the matter, its illegal income shall be confiscated and it shall be fined not less than the amount of and not more than five times its illegal income; if there was no illegal income or if the illegal income was less than Rmb300,000, it shall be fined not less than Rmb300,000 and not more than Rmb600,000; if the circumstances are serious, its permit for engaging in the securities business for its own account shall be revoked. The persons directly in charge and the other persons directly responsible shall be given a warning, their qualifications for their positions or their qualifications to engage in the securities business shall be revoked and they shall be fined not less than Rmb30,000 and not more than Rmb100,000.
Article 210: If a securities company deals in securities or handles trading matters contrary to a client's instructions, or handles non-trading matters contrary to the client's authentic declaration of intention, it shall be ordered to rectify the matter and be fined not less than Rmb10,000 and not more than Rmb100,000. If the client sustains losses thereby, the securities company shall be liable for damages in accordance with the law
Article 211: If a securities company or securities depository and clearing institution misappropriates client funds or securities, or purchases or sells securities for a client without instruction from such client, it shall be ordered to rectify the matter, its illegal income shall be confiscated and it shall be fined not less than the amount of and not more than five times its illegal income; if there was no illegal income or if the illegal income was less than Rmb100,000, it shall be fined not less than Rmb100,000 and not more than Rmb600,000. If the circumstances are serious, it shall be ordered to close down or its permit for the relevant business shall be revoked. The persons directly in charge and the other persons directly responsible shall be given a warning, their qualifications for their positions or their qualifications to engage in the securities business shall be revoked and they shall be fined not less than Rmb30,000 and not more than Rmb300,000.
Article 212: If a securities company, in carrying out its brokerage business, accepts blanket authorisation from a client to purchase or sell securities or gives a commitment to a client on earnings from the purchase or sale of securities or compensation for losses from the purchase or sale of securities, it shall be ordered to rectify the matter, its illegal income shall be confiscated and it shall be fined not less than Rmb50,000 and not more than Rmb200,000, additionally, its permit for the relevant business may be suspended or revoked. The persons directly in charge and the other persons directly responsible shall be given a warning and a fine of not less than Rmb30,000 and not more than Rmb100,000, additionally, their qualifications for their positions or their qualifications to engage in the securities business may be revoked.
Article 213: If an acquirer fails to perform such obligations as issuing a listed company takeover announcement or issuing a takeover offer in accordance with this Law, it shall be ordered to rectify the matter, given a warning and a fine of not less than Rmb100,000 and not more than Rmb300,000. Until it has rectified the matter, it may not exercise the voting rights attaching to the shares that it acquired or, by virtue of an agreement or other arrangement, jointly acquired with another. The persons directly in charge and the other persons directly responsible shall be given a warning and a fine of not less than Rmb30,000 and not more than Rmb300,000.
Article 214: If an acquirer or the controlling shareholder of the acquirer uses the takeover of a listed company to harm the lawful rights and interests of the acquired company or its shareholders, it shall be ordered to rectify the matter and given a warning; if the circumstances are serious, it shall additionally be fined not less than Rmb100,000 and not more than Rmb600,000. If the acquired company and its shareholders incur a loss as a result thereof, the acquirer or its controlling shareholder shall be liable for damages in accordance with the law. The persons directly in charge and the other persons directly responsible shall be given a warning and a fine of not less than Rmb30,000 and not more than Rmb300,000.
Article 215: If a securities company or a member of its working personnel violates this Law by privately accepting instructions from a client to purchase or sell securities, an order shall be given to rectify the matter and a warning issued, and the illegal income shall be confiscated and a fine of not less than the amount of and not more than five times the illegal income shall be imposed. If there was no illegal income or the illegal income was less than Rmb100,000, a fine of not less than Rmb100,000 and not more than Rmb300,000 shall be imposed.
Article 216: If a securities company violates provisions by engaging without approval in the trading of unlisted securities, it shall be ordered to rectify the matter, the illegal income shall be confiscated, and a fine of not less than the amount of and not more than five times the illegal income shall be imposed.
Article 217: If, after a securities company has been established, it fails to commence business within three months without justifiable grounds or, after having commenced business, voluntarily suspends business for a continuous period of not less than three months, its corporate business licence shall be revoked by the company registry.
Article 218: If a securities company establishes, acquires or closes down a branch or sub-branch, or merges, divides, ceases operations, is dissolved or becomes bankrupt, or establishes, acquires or takes an equity interest in a securities business organisation abroad without authorisation in violation of Article 129 hereof, it shall be ordered to rectify the matter, its illegal income shall be confiscated and it shall be fined not less than the amount of and not moret than five times its illegal income; if there was no illegal income or if the illegal income was less than Rmb100,000, it shall be fined not less than Rmb100,000 and not more than Rmb600,000. The persons directly in charge shall be given a warning and a fine of not less than Rmb30,000 and not more than Rmb100,000.
If a securities company makes changes to relevant particulars without authorisation in violation of Article 129 hereof, it shall be ordered to rectify the matter and fined not less than Rmb100,000 and not more than Rmb300,000. The persons directly in charge shall be given a warning and a fine of maximum Rmb50,000.
Article 219: If a securities company violates this Law by engaging in the securities business outside its scope of business, it shall be ordered to rectify the matter, the illegal income shall be confiscated, and a fine of not less than the amount of and not more than five times the illegal income shall be imposed; if there was no illegal income or if the illegal income was less than Rmb300,000, it shall be fined not less than Rmb300,000 and not more than Rmb600,000. If the circumstances are serious, the securities company shall be ordered to close down. The persons directly in charge and the other persons directly responsible shall be given a warning, their qualifications for their positions or their qualifications to engage in the securities business shall be revoked and they shall be fined not less than Rmb30,000 and not more than Rmb100,000.
Article 220: If a securities company fails to keep its securities brokerage business, securities underwriting business, securities business for its own account and securities asset management business separate according to law and mixes their operations together, it shall be ordered to rectify the matter, the illegal income shall be confiscated, and a fine of not less than Rmb300,000 and not more than Rmb600,000 shall be imposed. If the circumstances are serious, the relevant business permit shall be revoked. The persons directly in charge and the other persons directly responsible shall be given a warning and a fine of not less than Rmb30,000 and not more than Rmb100,000. If the circumstances are serious, their qualifications for their positions or their qualifications to engage in the securities business shall be revoked.
Article 221: If any entity submits sham supporting documents or uses other fraudulent means to conceal major facts and thus fraudulently obtains a securities business operating permit, or if a securities company commits a serious illegal act in the course of securities trading and is no longer qualified to operate such business, the securities regulatory authority shall revoke its securities business operating permit.
Article 222: If a securities company or any of its shareholders or the de facto controller of it violates provisions by refusing to submit or provide to the securities regulatory authority information and data on its operations and management, or if the information or data submitted or provided contains false or misleading statements or material omissions, it shall be ordered to rectify the matter, given a warning and fined not less than Rmb30,000 and not more than Rmb300,000, additionally, the relevant business permit of the securities company may be suspended or revoked. The persons directly in charge and the other persons directly responsible shall be given a warning and a fine of maximum Rmb30,000, additionally, their qualifications for their positions or their qualifications to engage in the securities business may be revoked.
If a securities company provides financing to, or security for, a shareholder or an affiliated party of a shareholder, it shall be ordered to rectify the matter, given a warning and a fine of not less than Rmb100,000 and not more than Rmb300,000. The persons directly in charge and the other persons directly responsible shall be fined not less than Rmb30,000 and not more than Rmb100,000. If the shareholder was at fault, the State Council's securities regulatory authority may place restrictions on its shareholder rights until it has rectified the matter as required. If it refuses to rectify the matter, it may be ordered to transfer the equity of the securities company that it holds.
Article 223: If a securities service institution fails to act with due diligence and the document that it prepares and issues contains false or misleading statements or material omissions, it shall be ordered to rectify the matter, its business revenue shall be confiscated, its securities service business permit shall be suspended or revoked and it shall be fined not less than the amount of and not more than five times its business revenue. The persons directly in charge and the other persons directly responsible shall be given a warning, their qualifications to engage in the securities business shall be revoked and they shall be fined not less than Rmb30,000 and not more than Rmb100,000.
Article 224: If anyone offers or underwrites corporate bonds in violation of this Law, the department authorised by the State Council shall impose penalties in accordance with relevant provisions of this Law.
Article 225: If a listed company, securities company, stock exchange, securities depository and clearing institution or securities service institution fails to preserve relevant documents or information in accordance with relevant provisions, it shall be ordered to rectify the matter, given a warning and a fine of not less than Rmb30,000 and not more than Rmb300,000; if it conceals, forges, alters or destroys relevant documents or information, it shall be given a warning and fined not less than Rmb300,000 and not more than Rmb600,000
Article 226: If a securities depository and clearing institution is established without the approval of the State Council's securities regulatory authority, the securities regulatory authority shall close down the same, confiscate the illegal income and impose a fine of not less than the amount of and not more than five times the illegal income.
If an investment consultancy, financial consultancy, credit rating agency, asset appraisal organisation or accounting firm engages in the securities service business without approval, it shall be ordered to rectify the matter, its illegal income shall be confiscated and it shall be fined not less than the amount of and not more than five times its illegal income.
If a securities depository and clearing institution or a securities service institution violates this Law or the lawfully formulated business rules, the securities regulatory authority shall order rectification, confiscate the illegal income, and impose a fine of not less than the amount of and not more than five times the illegal income; if there was no illegal income or the illegal income was less than Rmb100,000, impose a fine of not less than Rmb100,000 and not more than Rmb300,000. If the circumstances are serious, the securities regulatory authority shall order the securities depository and clearing institution or securities service institution to close down or shall revoke its securities service business permit.
Article 227: If the State Council's securities regulatory authority or the department authorised by the State Council is characterised by any of the circumstances set forth below, the persons directly in charge and the other persons directly responsible shall be subjected to administrative sanctions in accordance with the law:
(1) it checks/examines and approves an application for the offering of securities, the establishment of a securities company, etc. that fails to comply with this Law;
(2) it violates provisions in taking such measures as an onsite inspection, investigation and collection of evidence, making of inquiries, freezing or placing under seal as specified in Article 180 hereof;
(3) it violates provisions in imposing administrative penalties on relevant organisations or personnel; or
(4) it commits another act of failing to perform its duties in accordance with the law.
Article 228: If a member of the working personnel of a securities regulatory authority or a member of the public offering review committee fails to perform his/her duties specified in this Law, abuses his/her authority, is derelict in his/her duties, uses the advantages of his/her position to obtain improper gains or divulges the trade secrets of relevant work units or individuals of which he/she has knowledge, his/her legal liability shall be pursued in accordance with the law.
Article 229: If a stock exchange examines and approves an application for the listing of securities that fails to satisfy the conditions specified in this Law, it shall be given a warning, its business revenue shall be confiscated and it shall be fined not less than the amount of and not more than five times its business revenue. The persons directly in charge and the other persons directly responsible shall be given a warning and a fine of not less than Rmb30,000 and not more than Rmb300,000.
Article 230: If the lawful exercise by a securities regulatory authority or its working personnel of its/their authority to conduct a supervisory inspection or investigation is refused or hindered without the use of violence or threats, public security administration related penalties shall be imposed in accordance with the law.
Article 231: If a violation of this Law constitutes a criminal offence, criminal liability shall be pursued in accordance with the law.
Article 232: If the property of anyone who has violated this Law and who therefore bears civil liability for damages and is required to pay a fine is insufficient to pay both the damages and the fine, such person shall first bear the civil liability for damages.
Article 233: If laws, administrative regulations or relevant provisions of the State Council's securities regulatory authority are violated and the circumstances are serious, the State Council's securities regulatory authority may take the measure of banning the relevant persons responsible from the securities market.
For the purposes of the preceding paragraph, the phrase "ban from the securities market" means the system wherein the affected person may not engage in the securities business or is prohibited from serving as a director, supervisor or senior officer in a listed company for a certain period of time or for life.
Article 234: All fines paid and illegal income confiscated in accordance with this Law shall be paid into the national treasury.
Article 235: If a party concerned is dissatisfied with a punishment decision of the securities regulatory authority or the department authorised by the State Council, such party may apply for an administrative review or directly institute proceedings in a people's court according to law.
Part Twelve: Supplementary provisions
Article 236: Securities whose listing and trading on a stock exchange was approved pursuant to administrative regulations prior to the implementation of this Law shall continue to be traded according to law.
Securities business organisations that were established upon approval pursuant to administrative regulations and provisions of the State Council's administrative department in charge of finance prior to the implementation of this Law and that do not fully comply with the provisions hereof must meet the requirements specified herein within the specified time limit. The State Council shall separately formulate implementing measures therefor.
Article 237: When applying for approval to make a public offer of shares or corporate bonds, the issuer shall pay a review fee in accordance with provisions.
Article 238: If a domestic enterprise wishes to directly or indirectly offer securities abroad or to have its securities listed and traded abroad, it shall require the approval of the State Council's securities regulatory authority in accordance with the provisions of the State Council.
Article 239: The State Council will separately formulate the specific measures for the subscription for, and trading of, the shares of a domestic company in a foreign currency.
Article 240: This Law shall be effective as of January 1 2006.
Translator's Notes:
1 These characters mean "securities limited liability company".
2 These characters mean "securities company limited by shares".
3 These characters mean "securities depository and clearing".
clp reference:3700/14.08.31prc reference:中华人民共和国主席令 (十二届第14号)promulgated:2014-08-31effective:2014-08-31
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