1. On 13 May 2008, CSRC issued the Regulations on the Administration and Supervision of Branches of Securities Firms (Trial Implementation) (the “Regulations”), which took effect on that day.

According to the Regulations, securities firms which wish to establish branches will have to obtain approval from the CSRC. Branches are not independent legal entities and their legal responsibilities will be assumed by the respective securities firms. Branches should operate within the authorised scope of business of the relevant securities firms. Securities firms can authorise their branches to operate the following business:

  1. Managing the securities business department of the firm in specified regions;
  2. Operating the securities sales and securities sponsorship business of the firm in specified regions;
  3. Being a specialised institution of the firm to run a self-operated securities business;
  4. Being a specialised institution of the firm to run a securities asset management business; and
  5. Other businesses of securities firms approved by CSRC.

For more information, please refer to CSRC Circular No. 20 of 2008 at http://www.csrc.gov.cn/n575458/n575667/n4231514/n4231533/n4696680/10520207.html