Legal basis:
People's Republic of China (PRC) Securities Law
Article 1 This Law is formulated in order to regulate the issuance and trading of securities, protect the legitimate rights and interests of investors, safeguard social and economic order and public interests, and promote the development of the socialist market economy.
Article 2 This Law shall apply to the issuance and trading of stocks, corporate bonds, depositary receipts and other securities legally recognized by the State Council within the territory of People's Republic of China (PRC). Matters not covered in this Law shall be governed by the Company Law of People's Republic of China (PRC) and other laws and administrative regulations. This Law shall apply to the listing and trading of government bonds and securities investment fund shares; Where other laws and administrative regulations provide otherwise, such provisions shall prevail. Measures for the administration of issuance and trading of asset-backed securities and asset management products shall be formulated by the State Council in accordance with the principles of this Law. Anyone who engages in securities issuance and trading outside People's Republic of China (PRC), disrupting the market order in People's Republic of China (PRC) and harming the legitimate rights and interests of domestic investors, shall be dealt with in accordance with the relevant provisions of this Law, and shall be investigated for legal responsibility.
Article 3 The issuance and trading of securities must follow the principles of openness, fairness and impartiality.
Article 4 The parties involved in securities issuance and trading activities have equal legal status and should follow the principles of voluntariness, compensation, honesty and credibility.
Article 5 The issuance and trading of securities must abide by laws and administrative regulations. Fraud, insider trading and manipulation of the securities market are prohibited.
Article 6 Securities industry, banking industry, trust industry and insurance industry are operated and managed separately, and securities companies are established separately from banks, trusts and insurance institutions. Unless otherwise stipulated by the state.
Article 7 The securities regulatory authority in the State Council shall exercise centralized and unified supervision and management over the national securities market according to law. The State Council securities regulatory authority may set up representative offices as required to perform supervision and management duties as authorized.
Article 8 State audit institutions shall supervise securities trading places, securities companies, securities registration and settlement institutions and securities supervision and administration institutions through auditing according to law.