What is illegal securities and futures activities?

Illegal securities and futures activities refer to behaviors that violate the provisions of the Securities Law and other laws and regulations, without the approval of the competent authority, publicly issue securities, establish securities trading venues or securities companies, or engage in securities brokerage, securities underwriting, securities investment consulting and other securities businesses.

The main manifestations of illegal securities and futures activities

（1） Illegal issuance of securities. The main manifestation of illegal issuance of securities is the illegal issuance of stocks, using the pretext of going public both domestically and internationally, to lure investors into purchasing and transferring so-called "original shares". The characteristics of fraudulent methods include: using listing at home and abroad and obtaining high returns as bait; Targeting the general public, especially middle-aged and elderly individuals; With the aim of defrauding money.

（2） Illegal operation of securities business. Mainly including illegal securities investment consulting business, illegal brokerage business, etc. Illegal securities investment consulting is a common illegal behavior. Criminals set up websites or use social media, self media and other tools to attract members or customers, using guaranteed returns and high returns as bait, illegally providing securities investment analysis, prediction or advice, and charging "membership fees", "consulting fees", and "service fees". Illegal brokerage business mainly refers to institutions or individuals without brokerage business qualifications who control accounts and open sub accounts, accept trading instructions, act as agents to complete transactions, such as conducting over-the-counter fund allocation activities through opening sub accounts and other means.

（3） Illegal operation of futures business. The main manifestation is that criminals forge futures platforms and induce investors to speculate in futures. These types of platforms are usually "counterfeit futures" with no real trading, and their funding interfaces are connected to third-party payment institutions. After the victim's funds are transferred to a designated third-party payment company, they undergo money laundering operations and are transferred to a personal account controlled by the suspect, which is essentially a form of fraud.

03 Common types of illegal securities and futures activities

（1） Private equity firms provide "internal stock information"

（2） "Expert" stock recommendation and "proxy operation"

（3） Selling "stock trading software"

（4） Acting as an agent for overseas securities and futures trading

（5） Selling 'original shares' that are about to be listed domestically or overseas

（6） Counterfeiting legitimate securities and futures operating institution website

（7） Organizing futures trading activities under the name of "spot commodity trading"

How to identify illegal securities and futures activities

（1） Check the subject qualifications. According to regulations, conducting securities and futures business (including related consulting services) requires approval from the China Securities Regulatory Commission and obtaining corresponding business qualifications. You can search for information on legitimate securities and futures operating institutions and their employees through the website of the China Securities Regulatory Commission (www.csrc. gov.cn), the website of the China Securities Association (www.sac. net. cn), and the website of the China Futures Association (www.cfachina. org), or verify relevant institution and personnel information with the local securities regulatory bureau.

（2） Look at marketing methods. Criminals often refer to themselves as "teachers" and "stock gods" to attract investors by knowing "insider information" and being able to choose "dark horse stocks". As long as they follow him, they can make big money, which is not allowed by legal securities and futures institutions. Securities and futures trading carries risks and cannot be guaranteed without losses. Risk notification is not just a process requirement.

（3） Look at the Internet site. The website of illegal securities and futures websites often uses letters and numbers with no special meaning, or changes or adds letters and numbers to the website of legitimate securities and futures operating institutions. You can view the website of legitimate securities and futures operating institutions and identify illegal securities and futures websites through the websites of the China Securities Regulatory Commission, the China Securities Association, and the China Futures Industry Association. Search for website registration and server location to identify irregular websites.

（4） Check the receiving account. Legitimate securities and futures trading institutions can only conduct business in the name of the company, and can only open bank accounts in the name of the company. Investors should be extra cautious in the remittance process. If the receiving account is a personal account or does not match the name of the institution, please reject it decisively.

Investors participating in illegal securities and futures activities are not protected by law. Article 18 of the Measures for the Suppression of Illegal Financial Institutions and Illegal Financial Business Activities of the State Council stipulates that "losses incurred due to participation in illegal financial business activities shall be borne by the participants themselves.". Therefore, investors must remain vigilant and stay away from illegal securities and futures activities.