Government can promote the democratization of such institutions so that they protect people from the very risks that they are worrying most about. Such possibilities include livelihood insurance, home equity insurance, income linked loans, and GDP linked and home price linked securities.

2 Actually control 5 equity or more of the securities firm by holding equity of the shareholders of the securities firm or by any other means.

1 Hold no less than 5 of the registered capital of the securities firm upon subscription or acquisition of the equity of the securities firm or

No unit or individual can entrust others or being entrusted to hold or manage equity of the securities firm without approval of the securities regulatory agency under the State Council.

1 For application of setting up a securities firm at home, or set up, acquire or hold equity of securities agencies abroad, decision should be made within 6 months of handling

Equity, on the other hand, was a much more flexible construct, often linked to the issue of social justice and subject to interpretation.

Article 13 If a securities firm changes registered capital, business scope, company form or key terms in company regulation, merger, divide, set up, acquire or revoke domestic branch, relocate domestic branch, set up, acquire, hold equity of domestic securities agency, it should get approval from the securities regulatory agency under the State Council.

Article 10 Any unit or individual in any of the following circumstances cannot be a shareholder or an actual controller with 5 equity or more of a securities firm

Official actions run the gamut, including a 480 billion government supported equity market backstop under the auspices of the China Securities Finance Corporation, a 19 billion pool from major domestic brokerages, and an open ended promise by the People s Bank of China (PBOC) to use its balance sheet to shore up equity prices. Moreover, trading was suspended for about 50 of listed securities (more than 1,400 of 2,800 stocks).

The securities firm should sign entrustment contracts with securities brokers who accept such entrustment, issue securities broker certificate, define authorized scope of securities broker and supervise working behavior of securities broker.

Without securities business license, the securities firm and its domestic branch shall not run securities business.

The securities broker should have securities working qualification.

Securities brokers should work within authorized scope of the securities firm and show securities broker certificates to customer.

Article 56 Where a securities firm carries out securities lending and borrowing but does not have sufficient funds or securities, it can borrow from the securities financial companies.

3 Trade securities or maneuver securities market with insider information

(5) Securities service agencies provided services for a securities firm.

Article 41 A securities firm engaged in securities business for its own account is limited to trading of legally issued stocks, bonds, warrants, securities investment funds or other securities recognized by the securities regulatory agency under the State Council.

Securities brokers shall not handle securities subscription or trading for customers.

Article 20 If a securities firm has two or more kinds of securities brokerage business, securities assets management business, financing with capital and securities, securities underwriting, securities sponsors, its board should set up remuneration and nomination committee, auditing committee and risk control committee to perform rights prescribed in company regulation.

1 Illegally buying securities issued by shareholder of the securities firm or other issuer with major relationship to securities firm against regulation

(e) The Service should reassess the requirements for additional investment officers, especially for North American securities, and or consider outsourcing a portion of the North American equity portfolio to outside discretionary investment managers (AS2001 95 1 22).

1 Customers purchase of securities, settlement of securities trading or customers withdrawal

Article 32 A securities firm should establish information inquiring system to ensure customers inquiring entrustment record, trading record, securities and balance during business hours of the securities firm, as well as other information such as name, practice license of the business operator and securities broker of the securities firm, certificate number of securities broker, etc.

Article 26 If a securities firm and its domestic branch are engaged in securities business prescribed in Article 125 of the Securities Law, they should follow the Securities Law and provisions of this Regulation.

Article 38 If a securities firm is engaged in securities brokerage business, it can entrust staff outside of the securities firm as securities broker, engaging in attracting and providing service for customers as agent.

Article 48 Securities lending and borrowing referred to in this article means that in the securities trading at the stock exchange or other securities trading places that have been approved by the State Council, securities firms lend capital or securities to customers for them to buy or sell securities based on the corresponding collaterals provided by the customers.

Securities account opened by the securities firm for securities assets management customer should be submitted to stock exchange for filing within 3 trading days.

Article 44 If a securities firm is engaged in self run securities business, its risk controlling indicators such as ratio of total securities value and company net capital, ratio of value of one type of securities and net corporate capital, and ratio of quantity of one type of securities and total issuing quantity of this type of securities should comply with prescription of the securities regulatory agency under the State Council.

Article 50 A securities firm that carries out securities lending and borrowing business shall sign a securities lending and borrowing contract with the customer, and shall open a customer securities guarantee account with the securities registration and settlement organs, and a customer funds guarantee account with the designated commercial bank in the name of the securities firm in accordance with the provisions of the securities regulatory agency under the State Council.

Article 28 When the securities firm is entrusted by securities registration settlement agency to open securities account for customers, it should audit name and identity authenticity declared by customers according to management rule of securities account.

The securities firm shall not provide customer s capital account and securities account to others.

If the securities firm closes all securities business, disbands, goes bankruptcy or revokes domestic branch, it should publicize in newspaper appointed by the securities regulatory agency under the State Council and submit securities business license to the securities regulatory agency under the State Council for deregistration based on regulation.

(ii) Securities Act

Article 37 If a securities firm is engaged in securities brokerage business, it should audit whether capital and securities in customer s account are sufficient or not.

(3) Where a securities firm violates provisions to entrust others to buy and sell securities

As an academic, Bernanke argued that central banks should be wary of second guessing massive global securities markets. They should ignore fluctuations in equity and housing prices, unless there is clear and compelling evidence of dangerous feedback into output and inflation.

The Chief will also manage and report on trading, cash and equity validation and settlement oversight programmes by managing the pricing and securities databases, bank account relationships and the oversight of cash activities, and establish and conduct independent performance calculations.

Article 61 The securities firm shall not provide financing or warranty to other people using the assets of the securities brokerage customers or securities assets management customers.

After a securities firm acquiring business license for the securities or domestic branch issued or changed by the corporate registration agency, it should apply to the securities regulatory agency under the State Council for issuing or changing license for securities business.

Article 5 By obeying national regulations, securities firms can issue, trade and sell securities financial products.

Securities brokers can only accept entrustment of one securities firm for customer attracting and service activities.

China Securities Regulatory Commission

a transaction involving securities

Article 45 A securities firm can be engaged in securities assets management business by accepting customer s entrustment or using customer s assets according to the Securities Law and this Regulation.

Article 30 Before the securities firm signs securities dealing entrustment, securities assets management, capital and securities financing contracts with customers, it should appoint specialist to introduce business rule and contract content to customers and let customer sign and confirm on risk disclosure letter.