Securities law in China

Securities law in China

BEIJING (AFP): China's top legislature has passed the country's first Securities Law which takes effect on July 1 next year, the official Xinhua news agency reported on Tuesday.

The 214-article law adopted by the Standing Committee of the National People's Congress, has been debated for six years and governs all aspects of the securities industry, the report said.

It prohibits foreigners from trading in so-called "A-shares" which are restricted to domestic investors.

It provides for a two-tier system for the securities industry in which securities companies are required to separate their own accounts from those of their clients.

The law also requires the separation of securities businesses from banking, trust and insurance operations.