Is capital allocation a crime of illegal business operations

Whether capital allocation constitutes an illegal business crime requires two factors to be defined: (1) whether stock capital allocation is a securities business; (2) whether Approved by the China Securities Regulatory Commission.

The notice of the Supreme People's Court, the Supreme People's Procuratorate, the Ministry of Public Security, and the China Securities Regulatory Commission on issues related to rectifying illegal securities activities clearly states: "Any unit or individual operating securities business must obtain approval from the China Securities Regulatory Commission. If it is approved, it is an illegal securities business and should be banned; if it is suspected of committing a crime, it will be investigated for criminal responsibility for the crime of illegal business operations

According to the "Criminal Law of the People's Republic of China"

Article 225: Whoever commits the crime of illegal business operations in violation of state regulations and commits any of the following illegal business acts, disrupts market order, and the circumstances are serious, shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention, and shall be fined concurrently or solely with the illegal gains A fine of not less than one time but not more than five times the amount; if the circumstances are particularly serious, the person shall be sentenced to fixed-term imprisonment of not less than five years and shall also be fined not less than one time but not more than five times the illegal income or property may be confiscated:

(1) Operating laws without permission , monopoly items or other restricted items stipulated in administrative regulations;

(2) Buying and selling import and export licenses, import and export certificates of origin, and other business licenses stipulated in laws and administrative regulations, or Approval documents;

(3) Illegal operations of securities, futures, and insurance businesses without approval from relevant national competent authorities, or illegal fund payment and settlement business;

(4) Other illegal business activities that seriously disrupt market order.