On 16 May 2008, the China Securities Regulatory Commission (CSRC) released the Regulations to Further Regulate Securities Business Network (the “Regulations”), which took effect that day. It aims to further strengthen the administration and supervision of the securities business.

The Regulations set out in detail the conditions for the establishment of securities business departments by securities firms both within the jurisdiction of the local securities regulatory bureaus where the securities firms are located and throughout the country.

Based on the principle of progressive regulation and step-by-step implementation, securities firms should standardise qualified securities service departments into securities business departments before the end of August 2010. Securities business departments which are established without CSRC’s approval should be closed before the end of August 2010.

For more information, please refer to CSRC Circular No. 21 of 2008 at http://www.csrc.gov.cn/n575458/n575667/n4231514/n4231533/n4696680/10520229.html