Investor Rights: Responsibilities of All Participants in the Securities Market

oneWhat are the participants in the securities market, what are their responsibilities and responsibilities?

Answer: In the securities market, participants include listed companies, investors, securities companies, stock exchanges, securities registration and settlement institutions, securities intermediaries (accounting firms with securities industry qualifications, law firms, securities investment consulting institutions, and other intermediary institutions), and securities regulatory agencies.

The "Outline of Responsibility Education for All Parties in the Securities Market" issued by the China Securities Regulatory Commission has made clear requirements for the responsibilities of all parties involved in the securities market. Investors should understand the responsibilities of the main participants in the securities market, clarify the rights and obligations of all parties, and greatly benefit from safeguarding their legitimate rights and interests.

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twoWhat are the responsibilities of securities investors?

Answer: Investors should establish a risk awareness when investing and always pay attention to investment risks. This includes: carefully reading the public disclosure information of the issuer's stock issuance and listing, and analyzing the investment value of the issuing company's stock; Undertake due to delisting of listed companies/The investment risk of bankruptcy; Bear the risk of investment returns caused by fluctuations in market stock prices; Undertake the risk of lack of liquidity in shares, etc;

In the securities trading process, engage in legal transactions to prevent and bear the risks involved in the transaction. This includes fulfilling the Securities Entrustment Purchase and Sale Agreement signed with the securities business department where the account is opened; Responsible for violating legal account opening and transactions; Bear the losses incurred due to participating in illegal financial business activities; Bear the losses caused by non-standard trading operations; Undertake transaction risks caused by force majeure factors; Undertake punishment for intentionally participating in illegal securities and futures trading There is an obligation to report illegal trading activities and other illegal and irregular behaviors.

During the period of holding stocks, recognize the legal status of one's own shareholders and actively exercise shareholder rights. Including: actively participating in shareholder meetings, exercising shareholder rights, and participating in corporate governance; Take responsibility for improperly fulfilling shareholder obligations; Undertake investment risks arising from changes in the issuer's operations and returns; Comply with the provisions of the articles of association of listed companies, etc.

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threeWhat are the responsibilities of the issuer?

Answer:（one）Provide truthful, comprehensive, and objective information to intermediaries during the issuance of securities.

（two）To meet all substantive requirements stipulated in the Company Law and the Securities Law, a governance structure of a listed company that meets the requirements must be established.

（three）Information must be truthfully, accurately, completely, and promptly disclosed, mainly including prospectus, listing announcement, and other documents.

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fourWhat are the responsibilities of listed companies?

Answer:（one）Strictly disclose information in accordance with the Company Law, Securities Law, and relevant laws, regulations, and format requirements.

（two）Strictly abide by the commitments in legal documents such as the prospectus and listing announcement, and be responsible to investors.

（three）Improve the corporate governance structure and standardize operations.

（four）The directors, supervisors, managers, and other senior personnel of the company shall abide by the company's articles of association, faithfully perform their duties, safeguard the interests of the company, and shall not use their position and authority in the company to seek personal gain for themselves or others.

（five）Directors, supervisors, managers, and other senior personnel of the company must bear corresponding compensation responsibilities for losses caused to the company or investors due to their failure to perform their duties or breach of integrity obligations.

（six）It must comply with all the provisions of the Company Law and the Securities Law regarding the listing and trading of publicly issued stocks.

（seven）We should implement a "three separation" with related parties in terms of personnel, assets, and finance.

（eight）Prohibit unfair related party transactions.

（nine）External guarantees should be strictly in accordance with the provisions of the China Securities Regulatory Commission's "Notice on Issues Related to Guarantees Provided by Listed Companies for Others".

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fiveWhat are the responsibilities of securities companies in the market trading process?

Answer:（one）It shall not engage in securities business and other businesses beyond the approved business scope.

（two）Securities companies should use their own funds and legally raised funds for self operation.

（three）We have a duty of integrity towards investors, correctly execute customer instructions, and maintain confidentiality for customers.

（four）It is strictly prohibited to engage in legal and regulatory prohibited behaviors such as deceiving investors into buying and selling securities. A securities company and its business outlets shall operate securities business at the business premises approved by the regulatory authority. It is strictly prohibited to open or cooperate with others to open illegal trading outlets for illegal securities trading.

（five）Draw and establish trading risk reserves in accordance with regulations.

（six）Responsible for violating account opening and trading rules.

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sixWhat is the relationship between securities firms and customers?

Answer: As a customer of the securities business department, buying and selling stocks in the securities business department is a contractual relationship between the securities firm and the customer. The specific form is the "Securities Trading Agency Agreement" signed between the securities firm and the customer, in which both parties clearly define their respective rights and obligations and comply with the agreement.

Investors have the obligation and responsibility to abide by trading rules and bear investment risks, while securities firms have the obligation to faithfully execute customer trading instructions, properly keep customer custody of stocks and deposited funds; Timely delivery of entrusted instruction execution and proof documents of execution results; Confidentiality of customer information; Maintain transaction vouchers and ensure their authenticity and completeness. Correspondingly, securities firms have the right to collect commissions and have priority rights to receive compensation for the securities of defaulting clients.

Here, let's focus on the confidentiality system of securities firms towards customers. According to regulations, stock exchanges, securities companies, securities registration and settlement institutions, etc. must keep confidential the accounts opened by investors in accordance with the law. Except for situations that public security, procuratorial and legal authorities can inquire about in accordance with the law for the purpose of hearing cases, customers' account information shall not be disclosed. Therefore, when you discover that the securities business department has intentionally or unintentionally disclosed your personal data, you should immediately report it directly to the securities firm to protect personal data information from leakage.

Furthermore, investors also have the right to know about the securities trading process. The process of securities business departments acting as agents for investors to complete stock trading should be transparent, and investors have the right to know information about entrustment, trading, settlement and delivery.

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sevenWhat tips do securities firms have for investors' trading risks?

Answer: When conducting securities trading, you may receive higher investment returns, but at the same time, there are also significant securities investment risks.

In order to help investors better understand the risks involved, securities firms have the obligation to remind investors of the risks associated with securities investment and provide a "risk warning letter" when opening an account. The details are as follows:

Investors engaged in securities investment face the following risks:

（one）Macroeconomic risks: Due to changes in China's macroeconomic situation, as well as changes in the macroeconomic environment of surrounding countries and regions, as well as changes in the surrounding securities markets, there may be fluctuations in the domestic securities market, which may result in losses for you. You will have to bear the resulting losses.

（two）Policy risk: Changes in laws, regulations and relevant policies and rules related to the securities market may cause price fluctuations in the securities market, which may cause you to lose money. You will have to bear the losses caused thereby.

（three）Business risks of listed companies: due to changes in the overall business situation of the industry in which the listed company operates; Factors related to the operation and management of listed companies, such as significant mistakes in business decisions, changes in senior management personnel, and major lawsuits, may cause fluctuations in the company's securities prices; Due to the poor management of a listed company, it may even result in the company being suspended or delisted, which puts you at risk of losses.

（four）Technical risk: Since transaction matching and market disclosure are realized through electronic communication technology and computer technology, these technologies may be attacked by network hackers and computer virus, which may cause losses to you.

（five）Risks caused by force majeure factors: Force majeure factors such as earthquakes, fires, floods, wars, etc. may cause the paralysis of the securities trading system; Uncontrolled and unpredictable system failures, equipment failures, communication failures, power failures, etc. in the securities trading department may also lead to abnormal operation or even paralysis of the securities trading system. These can make your trading orders unable to be completed or unable to be fully completed, and you will have to bear the losses caused thereby.

（six）Other risks: Due to your password leakage, improper operation, investment decision-making errors, and other reasons, you may incur losses, which will be borne by yourself; Any promise given by others to you in securities trading that you will make profits or not incur losses is baseless, and similar promises will not reduce the likelihood of your losses.

Special reminder: Investors should carefully formulate securities investment strategies based on their own economic strength and psychological resilience, especially when you decide to purchaseST、*STWhen dealing with stocks, it is particularly important to be aware that such stocks carry greater risks than other stocks.

As can be seen from the above, the securities market is a market where risks are always present. There is a possibility of profit and a risk of loss when you engage in securities trading. You must have a clear understanding of this and carefully consider whether to engage in securities trading.

There are risks in the market, please be cautious when entering the market!

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eightHow long does a securities firm keep customer information?

Answer: The customer commission voucher includes the documents filled out by the counter commission and the computer records formed by non counter commission. Regardless of securities laws and regulations or current trading rules, securities firms should keep entrusted vouchers in the prescribed manner and period. At present, the requirement for storage period is not less than five years.