"Investor Protection-Rules, Risk Knowledge" XXVIII.

-- Introduction of investor rights related institutions

When the rights and interests of investors are infringed, different rights protection agencies can be sought according to different infringement situations.

What are the 1. securities regulators?

The China Securities Regulatory Commission (hereinafter referred to as the "CSRC") is a ministerial-level institution directly under the State Council. In accordance with laws, regulations and the authorization of the State Council, it uniformly supervises and manages the national securities and futures market, maintains the order of the securities and futures market, and guarantees its legal operation. The local supervisory bureau of the CSRC is a dispatched office established by the CSRC in accordance with the law, which mainly supervises and manages the securities business activities within its jurisdiction.

2. What is a Securities and Futures Mediation Organization?

A securities and futures mediation organization is a mediation organization established or actually managed by a securities and futures regulatory agency, an industry organization, etc.

According to the notice on carrying out the pilot work of diversified resolution mechanism for securities and futures disputes in some parts of the country jointly issued by the Supreme People's court and the China Securities Regulatory Commission in 2016, eight units were included in the list of the first batch of pilot mediation organizations of diversified resolution mechanism for securities and futures disputes, including China Securities Association, China Futures Association, China Securities Investment Fund Association, China Securities Investor Protection Fund Co., Ltd., China Securities Small and Medium Investor Service Center Co., Ltd., Shenzhen Securities and Futures Industry Dispute Mediation Center, Guangdong China Securities Investor Service and Dispute Mediation Center, Tianjin Securities Industry Dispute People's Mediation Committee.

What is the 3. Securities Association of China?

The China Securities Association is an industry self-regulatory organization with the status of an independent legal person and voluntarily formed by financial institutions engaged in securities business.

A securities company shall join the Securities Industry Association and become its member. Therefore, the Securities Dispute Mediation Center established by the Securities Industry Association handles mediation cases, and disputes often involve securities companies and their staff. For example, disputes over financing and securities lending between securities companies and investors, disputes over securities investment consultation, and disputes over securities trading agency contracts.

What is 4. China Securities Investor Protection Fund Co., Ltd?

China Securities Investor Protection Fund Co., Ltd. (hereinafter referred to as "insurance fund company") is a wholly state-owned protection fund company approved and established by the State Council in accordance with the Measures for the Administration of Securities Investor Protection Funds.

The insurance fund company was registered and established on August 30, 2005. Its main responsibilities include managing and operating the securities investor protection fund, monitoring the risks of securities companies, and participating in the risk disposal of securities companies. In the case of advance compensation of listed companies such as Wanfu Shengke, Hailianxun and Xintai Electric, the insurance fund company urged the relevant responsible units to set up a special fund for advance compensation, and promoted the completion of the special compensation case.

What is 5. China Securities Small and Medium Investor Service Center Co., Ltd?

China Securities Small and Medium Investor Service Center Co., Ltd. (hereinafter referred to as the Investment Service Center) is a securities and financial public welfare institution approved and directly managed by the China Securities Regulatory Commission.

The Investment Service Center was registered and established in December 2014. Its main responsibility is to provide education, law, information, technology and other services for small and medium investors to independently protect their rights, including public welfare publicity and education for small and medium investors; for small and medium investors to independently protect their rights Provide legal, information, and technical services; for public welfare securities and other varieties, exercise rights and rights protection as shareholders.

How should 6. arbitration institutions choose?

According to China's Arbitration Law, contractual disputes and other property rights and interests disputes between equal subjects can be arbitrated. Arbitration commissions may be established in municipalities directly under the Central Government and in cities where the people's governments of provinces and autonomous regions are located, or in other cities divided into districts as needed, instead of being established at different levels of administrative divisions.

The parties may voluntarily choose which arbitration institution to apply for arbitration across cities and provinces. At present, there are two arbitration institutions in Beijing, the Beijing Arbitration Commission and the China International Economic and Trade Arbitration Commission; in Shanghai, there are Shanghai Arbitration Commission and Shanghai International Economic and Trade Arbitration Commission. For example, two enterprises whose registration place and business place are both in Shanghai can also stipulate in the contract that "in the event of a dispute, either party has the right to apply to the Beijing Arbitration Commission for an arbitration award", which is legal and valid.

How do 7. choose people's courts to handle disputes?

China's people's courts are divided into basic people's courts, intermediate people's courts, higher people's courts and the Supreme People's Court.

In cases involving the protection of investors' rights, such as disputes over liability for false statements, there are special provisions on the level of jurisdiction of the court: "it shall be under the jurisdiction of the intermediate people's courts of provinces, municipalities directly under the Central Government and autonomous regions where the people's governments are located, cities separately listed on the State plan and special economic zones." In judicial practice, insider trading liability disputes and securities trading market manipulation liability disputes also refer to the level of jurisdiction standards for misrepresentation liability disputes.

In addition to the above-mentioned three types of securities infringement cases, other civil cases involving the rights and interests of investors have no special provisions on jurisdiction. According to the legal rules on jurisdiction of traditional civil and commercial cases, combined with the specific facts of the case, and taking into account the location of the defendant, the contract agreement, the amount of the subject matter, whether the case is foreign-related and other factors, to determine the court of first instance.

If either party is not satisfied with the result of the judgment of the court of first instance, it may appeal to the people's court at the next higher level to the court of first instance within the prescribed time limit. The result of the judgment made by the two-level court of the case is the legal document that finally enters into force.