State-owned enterprises can invest in the stock market.

Judging from existing laws and regulations, there are no legal obstacles for state-owned institutions to use their own funds to purchase treasury bonds, subscribe for funds and invest in stocks.

On May 21, 1997, the Securities Commission of the State Council, the People's Bank of China, and the State Economic and Trade Commission issued the "Regulations on Strictly Prohibiting State-owned Enterprises and Listed Companies from Speculating in Stocks",

In 1999, the China Securities Regulatory Commission issued the relevant provisions of the "Notice on Issues Concerning the Allotment of Stocks by Legal Persons". These two notices did not restrict the investment behavior of state-owned enterprises and institutions, but only stipulated that when investing in stocks, state-owned enterprises and institutions , no stock speculation is allowed.

According to the above regulations, state-owned enterprises and institutions should pay attention to the following issues when making the above-mentioned investments.

1. The funds must be the unit’s own funds. If it is a grant from a superior unit or a bank loan, it can only be earmarked and cannot be used for the above-mentioned investments.

2. When investing in stocks with your own funds, you can only open one B account as a legal person. You are not allowed to open multiple accounts. You are also not allowed to open a stock account in the name of an individual or provide services for individuals to buy and sell stocks. funds.

3. State-owned enterprises and institutions are not allowed to speculate in stocks. The meaning is: whether alloting stocks or investing in secondary market stocks, the stocks must be held for more than 6 months before they can be sold (that is, in the secondary market). The time interval between buying and selling or selling and buying the same stock in the market shall not be less than 6 months).

Violation of the above regulations will result in the confiscation of illegal gains, fines, and liability of the legal representative by the China Securities Regulatory Commission.

It should be noted that during the stock allotment process, underwriters generally set a maximum subscription limit, so the amount of funds used will not be very large. If the amount of your own funds is large, you can consider using portfolio investment (such as repurchasing government bonds and subscribing to funds) to maintain and increase the value of your own funds.