(1) Legal compliance principle. Securities companies shall abide by the provisions of laws, administrative regulations and relevant management measures when conducting margin trading and securities lending business, strengthen internal control, strictly guard against and control risks, and earnestly safeguard the safety of customers' assets. Securities companies must be approved by the China Securities Regulatory Commission to carry out margin financing and securities lending business. Securities companies shall not engage in margin trading with customers, and shall not provide any convenience and services for margin trading between customers or between customers and others. Securities companies should use their own funds or funds raised according to law when financing customers; To borrow securities from customers, you should use your own securities or securities that have obtained the right to dispose of them according to law.

(2) The principle of centralized management. Securities companies should implement centralized and unified management of margin financing and securities lending business. The decision-making and main management responsibilities of securities companies' margin trading business should be concentrated in the headquarters of securities companies. The company shall establish a complete margin trading business management system, decision-making and authorization system, operation process and risk identification, evaluation and control system. In principle, the decision-making authorization system for margin trading and securities lending business is established and operated according to the structure of "board of directors, business decision-making bodies, business execution departments and branches". The board of directors is responsible for formulating the basic management system of margin trading, determining the establishment and responsibilities of relevant departments of margin trading, and determining the total scale of margin trading. The business decision-making body is composed of relevant senior managers and department heads, and is responsible for formulating the operation flow of margin financing and securities lending business, selecting branches that can engage in margin financing and securities lending business, determining the credit line for a single customer and a single securities, the term and interest rate (rate) of margin financing and securities lending, the margin ratio and the minimum maintenance guarantee ratio, the types of securities that can be used to offset the margin and the conversion rate, and the types of securities that customers can buy and sell through margin financing and securities lending. The Business Execution Department is responsible for the specific management and operation of margin financing and securities lending business, formulating the standard text of margin financing and securities lending contracts, determining the credit line of specific customers, and inspecting, auditing and supervising the business operations of branches. Under the centralized monitoring of the company's headquarters, the branches are specifically responsible for customer credit inquiry, contract signing, account opening, deposit collection and transaction execution in accordance with the company's unified regulations and decisions. Securities companies should strengthen the control over the margin financing and securities lending activities of branches, prohibit branches from lending to customers without the approval of the headquarters, and prohibit branches from making their own decisions on matters such as signing contracts, opening accounts, granting credit and collecting deposits that should be decided by the headquarters.

(3) The principle of independent operation. Securities companies should improve the business isolation system to ensure that the margin trading business is separated from securities asset management, securities proprietary trading, investment banking and other businesses, and operate independently in terms of institutions, personnel, information and accounts.

(4) The principle of post separation. The front, middle and back offices of securities companies' margin trading should be separated and restricted from each other. Different departments and posts are responsible for each major link, and the departments and posts responsible for risk monitoring and business audit are independent of other departments and posts. The senior managers in charge of margin financing and securities lending business shall not concurrently serve as the risk monitoring department and the business audit department.