Chinese Mandarin - Securities Law of the People's Republic of China (revised in 2005)

BIZCHINA / Finance

Securities Law of the People's Republic of China (revised in 2005)

Updated: 2006-04-18 08:56

Article 179 The securities regulatory authority under the State Council
shall perform the following functions and duties regarding the
supervision and administration of the securities market:
(1) Formulating the relevant rules and regulations on the supervision
and administration of the securities market and exercising the power of
examination or verification according to law;
(2) Carrying out the supervision and administration of the issuance,
listing, trading, registration, custody and settlement of securities
according to law;
(3) Carrying out the supervision and administration of the securities
activities of a securities issuer, listed company, stock exchange,
securities company, securities registration and clearing institution,
securities investment fund management company or securities trading
service institution according to law;
(4) Formulating the standards for securities practice qualification and
code of conduct and carrying out supervision and implementation according
to law;
(5) Carrying out the supervision and examination of information
disclosure regarding the issuance, listing and trading of securities;
(6) Offering guidance for and carrying out supervision of the activities
of the securities industrial association according to law;
(7) Investigating into and punishing any violation of any law or
administrative regulation on the supervision and administration of the
securities market according to law; and
(8) Performing any other functions and duties as prescribed by any law
or administrative regulation. The securities regulatory authority under
the State council may establish a cooperative mechanism of supervision
and administration in collaboration with the securities regulatory bodies
of any other country or region and apply a trans-border supervision and
administration.

Article 180 Where the securities regulatory authority under the State
Council performs its duties and functions, it has the right to take the
following measures:
(1) Carrying an on-the-spot examination of a securities issuer, listing
company, securities company, securities investment fund management
company, securities trading service company, stock exchange or securities
registration and clearing institution;
(2) Making investigation and collecting evidence in a place where any
suspected irregularity has happened;
(3) Consulting the parties concerned or any entity or individual
relating to a case under investigation and requiring the relevant entity
or person to give explanations on the matters relating to a case under
investigation;
(4) Referring to and photocopying such materials as the registration of
property right and the communication records relating to the case under
investigation;
(5) Referring to and photocopying the securities trading records,
transfer registration records, financial statements as well as any other
relevant documents and materials of any entity or individual relating to
a case under investigation; sealing up any document or material that may
be transferred, concealed or damaged;
(6) Consulting the capital account, security account or bank account of
any relevant party concerned in or any entity or individual relating to a
case under investigation; in the case of any evidence certifying that any
property as involved in a case such as illegal proceeds or securities has
been or may be transferred or concealed or where any important evidence
has been or may be concealed, forged or damaged, freezing or sealing up
the foregoing properties or evidence upon the approval of the principal
of the securities regulatory authority under the State Council;
(7) When investigating into any major securities irregularity such as
manipulation of the securities market or insider trading, upon the
approval of the principal of the securities regulatory authority under
the State Council, restricting the securities transactions of the parties
concerned in a case under investigation, whereby the restriction term may
not exceed 15 trading days; under any complicated circumstance, the
restriction term may be extended for another 15 trading day.

Article 181 Where the securities regulatory authority under the State
Council performs its functions and duties of supervision or examination
or investigation, the personnel in charge of supervision and examination
or investigators shall be no less than 2 and shall show their legitimate
certificates and the notice of supervision and examination as well as
investigation. Where the personnel in charge of supervision and
examination or investigation are less than 2 or fail to show their
legitimate certificates and the notice of supervision and examination or
investigation, an entity under examination and investigation has the
right to refuse.

Article 182 The functionary of the securities regulatory authority under
the State Council shall be duteous, impartial and clean, and handle
matters according to law, and may not take advantage of his post to seek
any unjust interests or divulge any commercial secrete of the relevant
entity or individual as accessible in his performance.

Article 183 Where the securities regulatory authority under the State
Council performs its functions and duties according to law, the entity or
individual under examination and investigation shall coordinate with it,
provide the relevant documents and materials in a faithful manner and may
not refuse any legitimate requirement, obstruct the performance of duties
and functions or conceal any document or material concerned.

Article 184 The regulations, rules as well as the working system of
supervision and administration as formulated by the securities regulatory
authority under the State Council according to law shall be publicized to
the general public. The securities regulatory authority under the State
Council shall, according to the results of investigation, decide the
punishment on any securities irregularity, which shall be publicized to
the general public.

Article 185 The securities regulatory authority under the State Council
shall establish an information pooling mechanism of supervision and
administration in collaboration with any other financial regulatory
authority under the State Council. Where the securities regulatory
authority under the State Council performs its functions and duties of
supervision and examination or investigation according to law, the
relevant departments shall coordinate with it.

Article 186 Where the securities regulatory authority under the State
Council founds any securities irregularity as involved in a suspected
crime when performing its functions and duties according to law, it shall
transfer the case to the judicial organ for handling.

Article 187 The functionary of the securities regulatory authority under
the State Council may not hold any post in an organization under its
supervision.

Chapter XI Legal Liabilities

Article 188 Where any company unlawfully makes any public issuance of
securities or does so in any disguised form without any examination and
approval of the statutory organ, it shall be ordered to cease the
issuance, return the funds as raised plus the deposit interests as
calculated at the interest rate of the bank at the corresponding period
of time and be imposed a fine of 1% up to 5% of the funds as illegally
raised. A company that has been established through any unlawful public
issuance of securities or through any unlawful public issuance of
securities in a disguised form shall be revoked by the organ or
department that performs the functions and duties of supervision and
administration in collaboration with the local people's government at or
above the county level. The person-in-charge or any other person directly
responsible shall be given a warning and imposed a fine of 30,000 yuan up
to 300,000 yuan.

Page: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

(For more biz stories, please visit Industry Updates)

Most Popular Stories in 48 Hours

� Foreign firms look to hotel sector

� Steelmakers to reject 19% iron ore hike

� Talks start over gov't contracts

� Boeing expects B747-8 success in Asia

� Money supply growth still climbing

Today's Top News 

� 21 killed, 1mln evacuated as typhoon hits S.China

� FM brands spying claims 'fictitious'

� US gov't limits Chinese computers use

� Chairman Mao portrait up for auction

� Pay rises by 16% for State sector workers

Top Biz News 

� China bans import, export of endangered species

� China Mobile in talks with Google to add Web services

� UK offers aid to improve life in poorest areas

� Nation's first A380 pilot to receive training

� Export of fishery workers to Taiwan resumed

Alibaba is the largest B2B marketplace in the world. Source model ship,
wooden puzzle, one-piece toilet, RC hovercraft, photo album, prom dress,
pocket bike, Vaginal Speculum, Samurai Sword, String Panty and PVC Pipe.

Chinese Mandarin