Legal analysis: 1. The participation of state-owned enterprises and institutions in futures trading must be approved by the competent department or the board of directors of the company. All exchanges should review the approval documents, and members should also strictly review the approval documents of state-owned enterprises and institutions entrusted to participate in futures trading. Since the promulgation of these Provisions, the China Securities Regulatory Commission, the State Economic and Trade Commission and the Ministry of Domestic Trade will conduct irregular inspections according to their respective responsibilities. Two, state-owned enterprises and institutions to participate in futures trading, mainly to hedge. State-owned enterprises and institutions operating losses can only engage in hedging business and may not engage in speculative transactions. Three, state-owned enterprises and institutions to participate in futures trading, must have a special organization, sound management rules and regulations and perfect account management system. The main person in charge of enterprises and institutions should always check their participation in futures trading. Four, state-owned enterprises and institutions to participate in futures trading, positions more than five times its working capital (current assets minus current liabilities), must be approved by the competent department or the board of directors of the company.

Legal basis: Securities Law of People's Republic of China (PRC).

Article 12 The initial public offering of new shares issued by a company shall meet the following conditions:

(1) Having a sound organizational structure;

(2) It has the ability of continuous operation;

(3) The financial and accounting reports of the last three years have been issued with unqualified audit reports;

(4) The issuer and its controlling shareholder or actual controller have not committed any criminal acts of corruption, bribery, embezzlement, misappropriation of property or disturbing the order of the socialist market economy in the last three years;

(5) Other conditions as stipulated by the the State Council Securities Regulatory Authority approved by the State Council.

When a listed company issues new shares, it shall meet the requirements stipulated by the securities regulatory authority of the State Council approved by the State Council, and the specific management measures shall be stipulated by the securities regulatory authority of the State Council.

The public offering of depositary receipts shall meet the conditions for the initial public offering of new shares and other conditions stipulated by the the State Council Securities Regulatory Authority.

Article 96 Stock exchanges and other national securities trading places approved by the State Council provide places and facilities for centralized securities trading, organize and supervise securities trading, implement self-discipline management, register according to law, and obtain legal person status.

The establishment, alteration and dissolution of stock exchanges and other national stock exchange places approved by the State Council shall be decided by the State Council.

The organizational structure and management measures of other national securities trading places approved by the State Council shall be formulated by the State Council.

Article 168 the State Council Securities Regulatory Authority shall supervise and manage the securities market according to law, maintain its openness, fairness and impartiality, guard against systemic risks, safeguard the legitimate rights and interests of investors and promote the healthy development of the securities market.