Article 169: Engagement in securities services businesses by investment consultancy institutions, financial consultancy institutions, credit rating institutions, asset valuation institutions and accounting firms must be approved by the State Council's securities regulatory authority and the relevant competent departments.

The administrative procedures for examination and approval of engagement in securities service businesses by investment consultancy institutions, financial consultancy institutions, credit rating institutions, asset valuation institutions and accounting firms shall be formulated by the State Council's securities regulatory authority and the relevant competent departments.

Article 170: The personnel of investment consultancy institutions, financial consultancy institutions and credit rating institutions that engage in securities service business must have professional knowledge of securities and have not less than two years' work experience in the securities business or securities service business. The State Council's securities regulatory authority shall formulate standards and administrative measures for the determination of the qualification of such personnel to engage in securities business.

Article 171: When engaging in securities service business, investment consultancy institutions and their employees may not commit the following acts:

investing in securities as an agent for an entrusting party; agreeing with an entrusting party to share earnings or losses from securities investment; purchasing or selling the shares of listed companies to which the consultancy institution provides services; providing or disseminating information that is false or misleads investors using the media or through other methods; or other acts prohibited by laws or administrative regulations. Where one of the acts listed in the preceding paragraph is committed, thereby causing loss to investors, the perpetrator shall bear the liability for damages according to law.

Article 172: Investment consultancy institutions and credit rating institutions that engage in securities service business shall charge service fees in accordance with the standards or charging methods prescribed by the relevant competent department of the State Council.

Article 173: Where a securities service organization formulates and issues documents such as audit reports, asset valuation reports, financial consultancy reports, credit rating reports or legal opinions, etc. for the issuance, listing or trading of securities or other securities business activities, it shall fulfil its duty of due diligence and check and verify the truthfulness, accuracy and completeness of the contents of documents and materials on which it relies. Where the documents formulated and issued by them contain falsehoods, misleading statements or major omissions, thereby causing loss to others, it shall bear joint and several liability for such damages with the issuer and the listed company, unless it is able to prove that it is not at fault.

PART NINE: SECURITIES ASSOCIATION

Article 174: The Securities Association is the self-regulating organization for the securities industry and is a social organization with the status of a legal person.

Securities companies must join the Securities Association.

The organ of authority of the Securities Association shall be the general assembly, composed of all of the members.

Article 175: The charter of the Securities Association shall be formulated by its general assembly and submitted to the State Council's securities regulatory authority for record filing.

Article 176: The Securities Association shall perform the following duties:

to educate and organize members to abide by laws and administrative regulations concerning securities; to safeguard the lawful rights and interests of members according to law and to report members' proposals and requests to the securities regulatory authority; to collate and process information on securities and provide services to members; to formulate rules to be complied with by the members, to arrange for vocational training for the working personnel of its members and to organize business exchanges among members; to mediate in the event of disputes over securities business between members or between members and their clients; to make arrangements for research by members into the development, operation and relevant contents of securities business; to supervise and inspect members' acts and to take disciplinary actions in accordance with regulations on any member that violates laws, administrative regulations or the charter of the Association; and other duties stipulated in the charter of the Securities Association. Article 177: The Securities Association shall have a board of governors. The members of the board of governors shall be elected as prescribed in the charter.