According to the law, clients' funds are kept in securities companies independently. Theoretically, if a securities company goes bankrupt, the client's funds can still be recovered. The closure of securities companies is generally due to poor management, so there may also be cases of illegal misappropriation of customers' funds. If this happens, the customer's funds may not be recovered. Therefore, to open an account, you should find some well-run and reputable brokers.
A securities company refers to a limited liability company or a joint stock limited company with independent legal personality, which is established with the approval of the the State Council securities regulatory authority in accordance with the provisions of the Company Law and the Securities Law and specializes in securities business.
Opening an account means that investors (including individuals or units) establish business relationships such as savings and credit with banks, and open securities accounts and capital accounts. There are many kinds of account opening, such as futures account, stock market account opening and foreign exchange account opening.
Extended data:
Account classification
Market category
According to the initial account opening network, it is divided into Shanghai securities account and Shenzhen securities account.
The Shanghai Securities Account is used to record the securities listed on the Shanghai Stock Exchange and other securities recognized by China Securities Board.
The Shenzhen Securities Account is used to record the securities listed on the Shenzhen Stock Exchange and other securities recognized by China Securities Board.
Fund users
According to the users of securities accounts, Shanghai securities accounts and Shenzhen securities accounts are divided into RMB ordinary stock accounts (A-share accounts for short), RMB special stock accounts (B-share accounts for short), securities investment fund accounts (fund accounts for short) and other accounts.
A-share accounts are only opened by domestic investors who are allowed to buy and sell A-shares by national laws, regulations and administrative rules. A-share accounts are divided into natural person securities accounts, general institutional securities accounts, securities companies, fund management companies and other institutional securities accounts according to their holders.
B-share accounts are divided into domestic individual investor securities accounts and overseas investor securities accounts according to the holders.
Opening rules
A natural person or legal person can open different types and uses of securities accounts. The same entity can open multiple securities accounts. Under normal circumstances, the first account opening network advises investors to open Shanghai A-share accounts and Shenzhen A-share accounts; Investors holding Hong Kong dollar investment securities shall open a Shenzhen B-share account; Investors holding US dollar investment securities shall open a Shanghai B-share account; For investors who have already opened A-share accounts, CSI has allowed them to invest in funds without opening a fund account.
Domestic securities are divided into A shares and B shares. The English in HongKong is: Hong Kong, so the shares in Hong Kong are called H shares. A shares and B shares are only traded in domestic securities companies, and each country has relevant securities institutions. Only by opening an account in the corresponding securities operation institution can the relevant stocks be traded.
References:
Open an account-Baidu Encyclopedia
Securities account-Baidu Encyclopedia