The source of the securities investor protection fund is donations from domestic and foreign institutions, organizations and individuals; There are also all securities companies registered in China, which pay 0.5% ~ 5% of their operating income; And the interest income from purchasing frozen funds when issuing stocks, convertible bonds and other securities; Finally, it also includes the income from recovery from the relevant responsible parties according to law and the income from bankruptcy liquidation of securities companies.

The purpose of establishing the securities investor protection fund is 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.

China Securities Investor Protection Fund Co., Ltd. established China Securities Investor Protection Fund according to the Administrative Measures for Securities Investor Protection Fund jointly issued by China Securities Regulatory Commission, Ministry of Finance and People's Bank of China, which is the innovation of the regulatory system, the perfection of the investor protection system and the concrete embodiment of the basic principle that China's securities legal system protects the legitimate rights and interests of investors, especially small and medium-sized investors.