The business scope of China's securities companies includes: securities brokerage, securities investment consulting, financial consulting related to securities trading and investment activities, securities underwriting and sponsorship, securities self-management, securities asset management and other securities businesses. According to the Securities Law of People's Republic of China (PRC), with the approval of the State Council Securities Regulatory Authority, securities companies can provide margin financing and securities lending services for customers to buy and sell securities. (1) Securities brokerage business, also known as "buying and selling securities as an agent", refers to the business in which 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 buying and selling securities on behalf of the share transfer system. In the securities brokerage business, the establishment of brokerage entrustment relationship is manifested in two links: account opening and entrustment. The establishment of brokerage relationship only establishes the direct agency relationship between investors and securities companies, and has not yet formed a substantive entrustment relationship. When the investor completes the specific entrustment procedure, that is, the investor fills in the entrustment form or self-help entrustment, and the securities company accepts the entrustment, the entrustment relationship protected and bound by law is established. The consignment note in the brokerage business is equivalent to the consignment contract in nature, which not only contains the main contents of the consignment contract, but also defines the agency business of the securities company as the trustee. According to the Regulation on the Supervision and Administration of Securities Companies, a securities company engaged in securities brokerage business may entrust a person other than the securities company to act as a securities broker to attract customers, provide customer service and sell products on its behalf. A securities broker shall have the qualification of securities practice. A securities broker shall engage in business within the scope authorized by the securities company and present the securities broker certificate to the customer. In March, 2009, China Securities Regulatory Commission issued the Interim Provisions on the Management of Securities Brokers, which further defined the securities companies' marketing activities of securities brokerage business by adopting the securities broker system. (II) Securities investment consulting business Securities investment consulting business refers to the activities of institutions engaged in securities investment consulting business and their consultants to provide portfolio investors or customers with securities investment analysis, prediction or suggestions, as well as other direct or indirect paid consulting services. Securities investment consulting business refers to the business activities that securities companies and securities investment consulting institutions accept clients' entrustment to provide clients with investment consulting services related to securities and securities-related products, assist clients in making investment decisions, and directly or indirectly obtain economic benefits. Investment consulting services include the selection of investment varieties, investment portfolio and financial planning suggestions. Issuing securities research report refers to the behavior of securities companies and securities investment consulting institutions to analyze the value, market trend or related influencing factors of securities and securities-related products, form investment analysis opinions such as securities valuation and investment rating, make securities research reports and release them to customers. Securities research reports mainly include value analysis reports, industry research reports and investment strategy reports involving securities and securities-related products. Securities research reports can be written or electronic documents. (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 act 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. Securities underwriting business can be commissioned or underwritten. Securities underwriting refers to the underwriting method in which a securities company buys all the securities of the issuer according to the agreement or buys all the remaining securities after selling by itself at the end of the underwriting period. The former is underwritten in full, and the latter is underwritten in balance. Securities consignment refers to the underwriting method in which securities companies sell securities on behalf of issuers and return all unsold securities to issuers at the end of the underwriting period. The Securities Law of People's Republic of China (PRC) also stipulates the underwriting method of the underwriting syndicate. According to the provisions of the Securities Law of People's Republic of China (PRC), if the total face value of securities issued to unspecified objects exceeds 50 million yuan, it shall be underwritten by an underwriting syndicate, which consists of the lead underwriter and the securities companies participating in the underwriting. Where an issuer applies for public offering of shares, corporate bonds convertible into shares, adopts underwriting according to law, or publicly issues other securities that are subject to the sponsorship system as stipulated by laws and administrative regulations, it shall employ an institution with sponsorship qualifications as the sponsor institution. When a securities company performs its sponsorship duties, it shall be registered as a sponsor institution in accordance with the provisions. Sponsors are responsible for the lead underwriting of securities issuance, and have the obligation to conduct due diligence on the issuer, check the authenticity, accuracy and completeness of the public offering documents, issue recommendations to the China Securities Regulatory Commission, and negotiate with the issuer to determine the issue price according to market conditions. (V) 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 the 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. A securities company must obtain the business license of the securities regulatory department to carry out its own business or set up a subsidiary to carry out its own business, and a securities company may not provide financing or guarantee for the subsidiary engaged in its own business. At the same time, securities companies are required to have a sound governance structure, effective internal management and effective control of business risks; The company has qualified senior managers and an appropriate number of employees, and a safe and stable information system; Establish a complete business management system, investment decision-making mechanism, operation process and risk monitoring system. (VI) Securities asset management business Securities asset management business refers to the behavior that securities companies, as asset managers, provide investors with investment management services for financial products such as securities in accordance with relevant laws and regulations and asset management contracts signed with investors, in accordance with the methods, conditions, requirements and restrictions stipulated in the asset management contracts, so as to maximize asset returns. Securities companies engaged in asset management business shall obtain business qualifications recognized by the securities regulatory authorities; The company's net capital is not less than 200 million yuan, and all risk control indicators meet relevant regulatory requirements. The net capital limit for the establishment of a limited aggregate asset management plan is 300 million yuan, and the net capital limit for the establishment of an unlimited aggregate asset management plan is 500 million yuan; The asset management business personnel have securities business qualifications and no record of bad behavior, among which there are not less than 5 personnel with more than 3 years experience in securities self-management, asset management or securities investment fund management; The company has a good corporate governance structure, complete internal control and risk management system. When a securities company conducts targeted asset management business for a single customer, it shall sign a targeted asset management contract with the customer and provide asset management services for the customer through the customer account. The characteristics of directional asset management business are: securities companies and customers must be one-to-one investment management services; The specific investment direction is stipulated in the asset management contract; It must be settled in the special securities account of a single customer. A securities company shall set up a collective asset management plan for multiple clients and act as the manager of the collective asset management plan, sign a collective asset management contract with clients, entrust the clients' assets to commercial banks or other institutions recognized by the China Securities Regulatory Commission with the qualification of legal person depository of clients' transaction settlement funds, and provide assets management services for clients through special accounts. The characteristics of collective asset management business are: collectivity, that is, securities companies have one-to-many customers; The difference between limited investment scope and unlimited investment scope; Customer assets must be managed; Special account investment operation; Strict information disclosure. Securities companies can set up limited aggregate asset management plans and unlimited aggregate asset management plans to engage in aggregate asset management business. (VII) Margin business Margin business refers to the business activities of lending funds to customers for them to buy listed securities or lending listed securities for them to sell, and collecting collateral. Securities companies engaged in margin trading and securities lending business shall meet the following conditions: sound corporate governance structure and effective internal control; The risk control indicators meet the requirements, and the financial status and compliance status are good; Having corresponding professionals, technical conditions, funds and securities to carry out business; Perfect business management system and implementation plan, etc. According to the Measures for the Administration of Pilot Margin Trading of Securities Companies, a securities company applying for a pilot margin trading business shall meet the following conditions: a company that has been engaged in brokerage business for three years and has a higher classification evaluation level; Perfect corporate governance and effective internal control can effectively identify, control and prevent business operation risks and internal management risks; The company's credit is good, and there is no illegal business operation in the last two years; In good financial condition; Customer assets are safe and complete, realizing centralized management and risk monitoring of transactions, clearing and customer accounts; It has a sound and feasible business implementation plan and internal management system, and has the personnel, technology, funds and securities needed to carry out business. (VIII) Intermediary introduction of securities companies (IB) IB(IntroducingBroker) refers to a business model in which an institution or individual accepts the entrustment of a commission merchant to introduce customers to the commission merchant and charge 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 IB business of securities companies A securities company applying for IB business qualification shall meet the following conditions: (1) All risk control indicators in 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. IB business scope of securities companies When a futures company entrusts a securities company to engage in IB business, it shall provide the following services: (1) Assist in account opening procedures. (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. IB business rules 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 the cooperation procedures and rules in account opening, quotation and trading system installation and maintenance, customer complaint reception and handling. Securities companies and futures companies shall operate independently, and their finance, personnel and business premises shall be separated.