2023 World Investor Protection Week

"World Investor Week" is a global event held by the International Organization of Securities Commissions (IOSCO) to raise awareness of the importance of investor education and protection, highlight the actions or initiatives of securities regulators worldwide regarding investor education and protection, and showcase good practices of securities regulators worldwide regarding investor education and protection.

According to the unified deployment of the China Securities Regulatory Commission, this year's "World Investor Week" mainly revolves around the two themes of "investor risk response ability" and "sustainable finance", aiming to enhance investors' risk prevention awareness and convey the concepts of rational investment, value investment, and long-term investment.

I. Beware of illegal overseas securities trading services

Illegal overseas securities trading services

Some overseas securities business institutions cooperate with domestic Internet companies to provide trading channels and services for domestic investors to invest in overseas securities markets through the platform websites or mobile clients of domestic Internet companies. For example, some websites and mobile clients claim to be able to provide trading services for overseas securities such as US stocks and Hong Kong stocks. In this case, investors must not participate.

China's "Securities Law" stipulates that no unit or individual may engage in the securities business without the approval of the securities regulatory agency of the State Council. China's "Regulations on the Supervision and Administration of Securities Companies" stipulates that overseas securities business institutions shall be approved by the securities regulatory agency of the State Council to engage in securities business in China. At present, except for Qualified Domestic Institutional Investors (QDII) and the "Shanghai-Hong Kong Stock Connect" mechanism, the China Securities Regulatory Commission has not approved any domestic or foreign institutions to provide services for domestic investors to participate in overseas securities trading.

Special reminder to investors: Domestic investors participate in overseas securities market transactions through the platform websites or mobile clients of domestic Internet companies. Since there is no corresponding legal protection, and the securities investment accounts and funds are overseas, investors' rights and interests will not be effectively protected once disputes occur. Please do not participate in such investments to avoid losses. According to current laws and regulations, domestic residents can invest in overseas securities markets through legal channels such as purchasing Qualified Domestic Institutional Investor (QDII) fund units and participating in "Shanghai-Hong Kong Stock Connect" transactions. Please participate in overseas securities market investment through legal channels to avoid being deceived.

II. Beware of illegal overseas futures trading services

Illegal overseas futures trading services

In addition, there are investment companies on the market that claim to be the general agent of overseas futures exchanges in China and can act as agents for customers to open overseas accounts for trading in futures contracts such as gold, foreign exchange, and crude oil. In this case, investors must keep their eyes open.

According to the "Regulations on the Administration of Futures Trading", without the approval of the China Securities Regulatory Commission, no unit or individual may establish or disguisedly establish a futures company to engage in futures business (including overseas futures brokerage business). The measures for domestic units or individuals to engage in overseas futures trading shall be formulated by the China Securities Regulatory Commission in conjunction with relevant departments of the State Council. The China Securities Regulatory Commission has not yet issued an overseas futures brokerage business license to any institution, and has not yet introduced measures for domestic units or individuals to engage in overseas futures trading.

Special reminder to investors: The institutions and personnel of overseas futures agents usually have no actual business institutions in China, and the losses caused by investors participating in such transactions are generally difficult to recover. Since the investment company that opens the account is not a futures company, according to the "Notice on Further Clarifying the Division of Responsibilities in Investigating and Handling Illegal Futures Transactions" of the China Securities Regulatory Commission and the State Administration for Industry and Commerce, all cases of illegally engaging in overseas futures transactions shall be investigated and handled by the industrial and commercial departments. Investors should directly respond to the industrial and commercial administration department where the investment company is located. If the amount involved is large, you can also report the case to the public security agency for handling.

Illegal securities and futures activities are rapidly changing, highly concealed, and highly deceptive, causing serious losses to many investors. Investors must be cautious and prevent investment risks.

Content source: Securities Exchange Investor Education Official Website