This Law is enacted to standardize the issuance and transaction of securities, protect the legitimate rights and interests of investors, maintain the socioeconomic order and public interests of society and promote the development of the socialist market economy.
This Law shall apply to the issuance and transaction of stocks, corporate bonds, depository receipts, and other securities lawfully recognized by the State Council within the People’s Republic of China. Where there are no such provisions in this Law, the provisions of the Company Law of the People’s Republic of China and other laws and administrative regulations shall apply.
This Law shall apply to the government bonds and shares of securities investment funds listed for transaction. Where there are specific provisions in other laws and administrative regulations, such particular conditions shall apply.
The administrative measures of issuance and transaction of asset-backed securities and asset management products shall be formulated by the State Council following the principles of this Law.
Where the issuance and transaction of securities outside the territory of the People’s Republic of China have disrupted the market order within the territory of the People’s Republic of China and damaged the legitimate rights and interests of investors within the territory, such activities shall be handled and investigated for legal responsibility under the relevant provisions of this Law.
The issuance and transaction of securities shall follow the principles of transparency, fairness, and equitability.
The parties involved in the issuance and transaction of securities shall enjoy equal legal status and abide by voluntariness, compensation, and good faith.
The issuance and transaction of securities shall comply with laws and administrative regulations. Any fraud, insider trading, and manipulation of the securities market shall be prohibited.
The separated operation and management shall apply to securities, banking, trust, and insurance businesses. The securities companies and banks, trust business institutions, and insurance business institutions shall be established separately unless otherwise provided for by the State.
According to Law, the securities regulatory authority under the State Council shall carry out centralized and unified supervision and administration of the securities market nationwide.
The securities regulatory authority under the State Council may, as it deems necessary, establish dispatched offices that shall perform the duties of supervision and administration according to authorization.
According to Law, the national audit institutions shall supervise the securities exchanges, securities companies, securities registration, clearing institutions, and securities regulatory bodies.