The Securities Investor Protection Fund is established to establish a long-term mechanism to prevent and deal with the risks of securities companies, safeguard social economic order and social interests, protect the legitimate rights and interests of securities investors, and promote the orderly and healthy development of the securities market. Approved by the State Council, the China Securities Regulatory Commission, the Ministry of Finance and the People's Bank of China jointly issued the Measures for the Administration of Securities Investor Protection Fund on June 30, 2005. The establishment of securities investor protection fund by the state is the main measure to establish a long-term mechanism for risk disposal of securities companies. It is also an important measure to implement the State Council's Opinions on Promoting the Reform, Opening-up and Stable Development of the Capital Market.