New CSRC rules open way for security investment market

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Chinese securities and futures investors must abide by new rules, enforced on Saturday with an aim to protect investors' interests, according to the new guidelines issued by the China Securities Regulatory Commission (CSRC).

Depending on investors' assets, income levels and professional experience, CSRC divided them into two types – professional and ordinary investors.

Professional investor should include financial institutions and individuals with financial assets worth over five million yuan (737,500 US dollars) or annual incomes of over 500,000 yuan (73760.46 US dollars) for the past three years.

They also need to meet the requirement of at least two years' professional experience in related sectors.

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Under the CSRC rules, ordinary investors are ordinary people with investment capability.

They are usually advised to buy financial products in line with their risk tolerance and, will receive reminders when buying higher risk products.

According to CSRC, securities and futures traders have been asked to sell the correct products and services to investors in line with their risk tolerance in order to maintain a good health in the market.

The new rules do not restrain investment freedom as investors can still buy higher risk products if they insist, Deng Ge, the spokesperson from the CSRC said.

The rules aim to encourage investors to purchase products within their risk tolerance in order to reduce unnecessary losses, Deng added.

(With inputs from Xinhua)

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