(1) Securities brokerage business
Securities brokerage business, also known as "trading agent business", refers to the business that securities companies buy and sell securities on behalf of customers. In securities brokerage business, securities companies only charge a certain percentage of commission as business income. Securities brokerage business is divided into over-the-counter securities trading business and securities trading business through stock exchanges. At present, China's securities companies mainly engage in brokerage business through stock exchanges. The OTC agency business of securities companies is mainly the agency business of securities traded in the share transfer system.
(2) Securities investment consulting business
Securities investment consulting business refers to the activities of institutions and their consultants engaged in securities investment consulting business to provide securities investment analysis, prediction or advice to securities investors or customers. Consulting services paid directly or indirectly.
(3) Financial consulting business related to securities trading and securities investment activities.
Financial consulting business refers to consulting, suggesting and planning business related to securities trading and securities investment activities. Specifically, it includes: providing consulting services such as restructuring, asset restructuring and early counseling for enterprises to apply for securities issuance and listing; Providing consulting services for major investments, mergers and acquisitions, related transactions and other businesses of listed companies; Provide consulting services for legal persons, natural persons and other organizations to acquire listed companies and related asset restructuring and debt restructuring; Provide consulting services for listed companies to improve corporate governance structure, design executive stock options, employee stock ownership plans, investor relations management, etc. Provide consulting services in financing planning, scheme design and roadshow promotion for capital operations such as refinancing, asset restructuring and debt restructuring of listed companies; Provide consulting services for creditors and debtors in debt restructuring, asset restructuring and related equity restructuring of listed companies, as well as other business forms recognized by China Securities Regulatory Commission.
(4) Securities underwriting and sponsorship business
Securities underwriting refers to the behavior of securities companies issuing securities on behalf of securities issuers. Where the securities publicly issued by the issuer to unspecified objects should be underwritten by a securities company according to laws and administrative regulations, the issuer shall sign an underwriting agreement with the securities company.
(5) Securities proprietary business
Securities proprietary business refers to the behavior of securities companies to buy and sell stocks, bonds, warrants, securities investment funds and other securities recognized by China Securities Regulatory Commission in their own names with their own funds or funds raised according to law, so as to obtain income. Self-operated securities activities are conducive to activating the securities market and maintaining the continuity of transactions. However, improper behaviors such as market manipulation and insider trading should be prevented in self-operated activities. Due to the characteristics of high returns and high risks in the securities market, many countries have formulated laws and regulations to strictly manage the self-operated business of securities operating institutions.
(6) Securities asset management business
Securities asset management business refers to the behavior that securities companies, as asset managers, provide investors with investment management services of securities and other financial products in accordance with the relevant laws and regulations and the asset management contracts signed with investors, in accordance with the ways, conditions, requirements and restrictions stipulated in the asset management contracts, so as to maximize asset returns.
(7) Margin trading business
Margin trading refers to the business activities of lending funds to customers for buying listed securities or lending listed securities for selling and collecting collateral.
(8) introduction of (IB) business by securities companies.
IB(IntroducingBroker) refers to a business model in which an institution or individual accepts the entrustment of a commission merchant, introduces customers to the commission merchant, and collects a certain commission. Intermediary introduction (IB) business of securities companies refers to the business activities of securities companies to introduce customers to futures trading and provide other related services by accepting commissions. According to China's current relevant system, securities companies can not directly buy and sell futures for customers, but can engage in intermediary business of futures trading.
1. Qualification conditions for intermediary business of securities companies
A securities company applying for IB business qualification shall meet the following conditions:
(1) The risk control indicators for the six months before the application date meet the prescribed standards.
(2) A third-party depository system for customer transaction settlement funds has been established as required.
(3) A wholly-owned or holding futures company, or under the control of the same institution as the futures company, and the futures company has the membership of a futures exchange that implements the member grading settlement system, and the risk supervision indicators in the two months before the application date continuously meet the prescribed standards.
(4) Equipped with necessary business personnel. There are at least 5 business personnel at the company headquarters, and at least 2 business personnel with the qualification of futures practitioners in the business department to carry out IB business.
(5) Business rules, internal control, risk isolation and compliance inspection systems related to intermediary business have been established and improved as required.
(6) Having a technical system to meet the business needs.
(seven) other conditions stipulated by the China Securities Regulatory Commission in accordance with the principles of market development and prudent supervision.
When a securities company applies for intermediary business, it shall submit the application materials specified in the Application for Introducing Business Qualification to the China Securities Regulatory Commission.
2. Business scope of intermediary business of securities companies
A securities company shall provide the following services when it is entrusted by a futures company to engage in IB business:
(1) Assist in opening an account.
(2) Providing futures market information and trading facilities.
(3) Other services as stipulated by the China Securities Regulatory Commission.
Securities companies are not allowed to conduct futures trading, settlement or delivery for customers, to receive and pay futures deposits for futures companies and customers, and to access and transfer futures deposits for customers by using securities capital accounts.
3. Business rules for intermediary business of securities companies
Securities companies can only accept IB business entrusted by futures companies wholly owned or controlled by the same institution, and cannot accept IB business entrusted by other futures companies. Securities companies shall, in accordance with the principles of compliance and prudent operation, formulate and effectively implement intermediary business rules, internal control, compliance inspection and other systems to ensure effective prevention and isolation of risks in intermediary business and other businesses. Futures companies and securities companies shall establish IB business docking rules, and clarify cooperation procedures and rules in account opening, installation and maintenance of market and trading systems, reception and handling of customer complaints, etc. Securities companies and futures companies shall operate independently, and their finance, personnel and business premises shall be separated.