Investors are required to open an account for securities transactions in the modern securities market. The securities account, equivalent to a securities passbook of investors, is used for recording balances and changes to securities held by the investors.
        Securities accounts fall into the Shanghai and Shenzhen securities accounts by trading market, and RMB common stock accounts (“A-share accounts”), RMB special stock accounts (“B-share accounts”), securities investment fund accounts, etc. by use. Investors with Chinese citizenship or corporate capacity as well as residents from Hong Kong, Macao and Taiwan living and working in China are eligible for an A-share account with their valid identity documents. 

       To open a securities account, individual and general institutional investors go to the business department of a securities company. Such securities companies and other account-opening agencies are entrusted by the CSDC to accept applications from investors, and the CSDC opens securities accounts for and in the name of investors. To be specific, investors must first submit an application for account opening to the securities company together with their valid identity documents. Upon receipt of the application, the securities company carefully examines and verifies these documents and other information provided by the investors to make sure that they are authentic, accurate and complete. Afterwards, the securities company submits the information on qualified applications to the CSDC via the account opening system. Through necessary examination and verification, the CSDC allocates a securities account number and feeds it back to the securities company, and then the securities company prints and issues a securities account card to the investor. Thus, the securities account opening formalities are completed. With a securities account, investors can immediately entrust their securities to a securities company for trading.