The Securities Association of China (SAC) is a self-regulatory organization for securities industry established according to relevent provisions of the “Securities Law of the People’s Republic of China” and the “Administrative Regulations on the Registration of Public Organizations”. SAC is a non-profit social institutional legal person function under the guidance and supervision of the China Securities Regulatory Commission and the Ministry of Civil Affairs of China.

Since established on August 28, 1991, SAC has earnestly enforced its “Articles of Association” and acted according to the principles of “Legitimate, Supervision, Self-regulation and Normalization”. Under the supervision and direction of CSRC, SAC relies on its members to discharge its 3 major functions: “Self-regulation, Bridging and Service”. In the process of promoting self-regulation, enhancing integrity construction, reflecting comments and suggestions of the industry and improving the industrial development environment, SAC has made adaquate contributions to its role as the self-regulatory organization for the industry. On 22 January 2007, the fourth Member General Meeting was held and Mr. Huang Xiangping was elected as the Chairman.

The highest authority of SAC is the Member General Meeting which is composed by all members. The Board of Directors is the executive body. SAC operates under the Chairman Responsbility System. By May 1, 2007, SAC has 299 members in total, including 109 Securities Companies, 51 fund management companies, 92 securities investment consulting institutions, 3 assets managements companies and 44 special members (2 stock exchanges, 1 securities depository and clear company, 8 fund custodian institutions and 33 local securities associations).

The objectives of SAC are:

• Conducting self-regulation over securities industry under the governnment’s centralized and comprehensive supervision and management;
• Bridging between the Government and the industry
• Providing services to members, protecting the lawful rights and interests of members
• Maintaining fair competition order in securities industry, promoting transparency, justice and fairness of the securities market and push forward healthy and steady development of the securities market.