Article 147 A securities registration and clearing institution shall perform the following functions: 

(1) Establishment of securities accounts and settlement accounts; 

(2) Deposit and transfer of securities; 

(3) Registration of securities holders' registers; 

(4) Settlement and delivery of securities transactions; 

(5) Distribution of securities rights and interests based on the entrustment of issuers; 

(6) Inquiry and information services relating to the aforesaid business operations; and 

(7) Other businesses approved by the securities regulatory authority under the State Council. 

Article 148 The registration and settlement of securities traded on stock exchanges and on other national securities trading venues approved by the State Council shall adopt a nationwide centralized and unified operation mode. 

The registration and settlement of securities other than those specified in the provisions of the preceding paragraph may be entrusted to securities registration and clearing institutions and other institutions which undertake the securities registration and settlement business according to law. 

Article 149 A securities registration and clearing institution shall formulate its articles of association and business rules according to law, which shall be subject to approval by the securities regulatory authority under the State Council. The participants in securities registration and settlement business shall abide by the business rules formulated by the securities registration and clearing institution. 

Article 150 The securities traded on stock exchanges or on other national securities trading venues approved by the State Council shall all be deposited in securities registration and clearing institutions. 

A securities registration and clearing institution shall not misappropriate the securities of its customers. 

Article 151 A securities registration and clearing institution shall provide a register of securities holders and the relevant materials to securities issuers. 

A securities registration and clearing institution shall, according to the result of securities registration and settlement, affirm the fact that a securities holder holds the relevant securities and provide the registration materials of securities holders. 

A securities registration and clearing institution shall guarantee the truthfulness, accuracy and completeness of the register of securities holders and the records of transfer, and shall not conceal, forge, alter or damage any of the aforesaid materials. 

Article 152 A securities registration and clearing institution shall take the following measures to guarantee the normal operation of its business:

(1) Having necessary equipment to provide services and complete data protection measures; 

(2) Having established complete management systems on operation, finance and security protection; and 

(3) Having established a complete risk control system. 

Article 153 A securities registration and clearing institution shall properly preserve the original vouchers as well as the relevant documents and materials on registration, deposit and settlement. The retention period shall be no less than 20 years. 

Article 154 A securities registration and clearing institution shall establish a securities clearing risk fund so as to pay in advance or make up any loss of the securities registration and clearing institution caused by default delivery, technical malfunction, operational errors or force majeure. 

The securities clearing risk fund shall be drawn from the business incomes and proceeds of the securities registration and clearing institution, and may also be contributed by settlement participants according to certain percentage of their total volume of securities transaction. 

The measures for raising and administrating the securities clearing risk fund shall be formulated by the securities regulatory authority under the State Council in collaboration with the finance department of the State Council. 

Article 155 The securities clearing risk fund shall be deposited in a special account of a designated bank and be managed separately. 

After a securities registration and clearing institution makes compensation by using the securities clearing risk fund, it shall recover the payment for the compensation from the relevant responsible persons. 

Article 156 An application for dissolving a securities registration and clearing institution shall be subject to the approval of the securities regulatory authority under the State Council. 

Article 157 An investor entrusting a securities company to make securities transactions shall apply through the securities company for opening a securities account at a securities registration and clearing institution. The securities registration and clearing institution shall open a securities account for the investors according to regulations. 

An investor applying for opening an account shall present legal proof of identity either as a citizen of the People's Republic of China, or as a legal entity or partnership thereof, except otherwise provided for by the State. 

Article 158 Where a securities registration and clearing institution provides securities settlement services as a central counterparty, it shall be the central clearing and settlement counterparty of the settlement participants, and shall conduct net settlement and provide centralized performance guarantee for securities transaction. 

When providing net settlement for securities transaction, a securities registration and clearing institution shall require the relevant clearing participant to deliver securities and funds in full amount and provide collateral of delivery according to the principles of delivery versus payment. 

Before a delivery is concluded, no one may use the securities, funds and collaterals involved in the delivery. 

Where a settlement participant fails to perform the duty of delivery on time, a securities registration and clearing institution shall have the right to dispose of the property prescribed in the preceding paragraph according to business rules. 

Article 159 The settlement funds and securities collected by a securities registration and clearing institution according to business rules shall be deposited in a special account for settlement and delivery and shall only be used for the settlement and delivery of the securities transactions concluded according to business rules, and shall not be subject to compulsory enforcement.