The first step: investors need to determine whether the brokerage firms and business departments to open accounts have financing and securities business qualifications

Brokerage firms to carry out financing and securities business pilot must be approved by the China Securities Regulatory Commission (CSRC); without the approval of the CSRC, no brokerage firms may not to the customer financing, securities, and may not be customers and customers, customers and others between the financing and securities Without the approval of the CSRC, no brokerage firm is allowed to raise or finance securities to its clients, or to provide any facilities and services for financing and financing activities between clients and clients, or between clients and others. Moreover, brokerage firms have qualification requirements for their subordinate business departments to carry out financing and securities financing business, and not necessarily all business departments can handle financing and securities financing business.

The second step: investors need to determine whether they meet the conditions of the brokerage firm's financing and securities clients

The financing and securities business has certain requirements for investors' asset status, professionalism, and investment ability, and the brokerage firms, for the sake of appropriateness management, will make the initial selection of investors applying for participation in the financing and securities business.

Investors need to evaluate and determine whether they meet the brokerage firm's customer selection criteria for financing and securities financing before opening an account for financing and securities financing business.

The third step: the investor needs to pass the credit of the brokerage firm's headquarter

The brokerage firm will collect credit from the investor applying for the financing and securities financing business before financing and financing the customer, and will understand the customer's identity, property and income status, experience in securities investment, and risk appetite, and will record and save them in written and electronic form.

The brokerage firm will comprehensively determine the investor's credit limit based on the application materials submitted by the investor, creditworthiness, value of collaterals, performance, market conditions and other factors.

Step 4: Investors need to sign the financing contract and risk disclosure letter with the brokerage firm

Before signing the financing contract with the brokerage firm, investors should listen carefully to the relevant personnel of the brokerage firm to explain the business rules and contract contents, understand the rules and risks of the financing business and sign the financing contract and risk disclosure letter to confirm the financing contract and risk disclosure letter. An investor can only sign a financing and securities financing contract with one brokerage firm and integrate funds and securities with it.

Investors should pay special attention to and understand the following contents of the financing and securities financing contract: (1) the amount of financing and securities financing, the term, the interest (fee) rate, and the way of calculating the interest (fee); (2) the ratio of margin, the ratio of maintenance guarantee, the types of securities that can be offset against the margin and the conversion rate, and the scope of secured claims; (3) the way of notification of additional margin and the period of additional margin; (4) the way of liquidation of debts by investors; and (5) the way of notification of additional margin and the period of time for which the additional margin is to be used. (4) the manner in which the investor settles the debt and the right of the securities company to dispose of the collateral; (5) the treatment of interests in the collateral securities and securities sold on margin, etc.

Step 5: The investor opens a credit securities account and a credit fund account in the account opening business office

(1) Open a credit securities account

After the investor and the brokerage firm have signed a financing and securities financing contract, the brokerage firm will open a real-name credit securities account for the investor in accordance with the provisions of the securities registration and settlement institution. The investor's credit securities account is the secondary account of the brokerage firm's customer credit trading collateral securities account, which is used to record the detailed data of the collateral securities entrusted by the investor to the brokerage firm. An investor can only have one credit securities account for trading securities listed on one stock exchange. The name of the account holder of the investor's credit securities account should be the same as the account holder of his ordinary securities account.

A credit securities account is independent of an ordinary securities account and is a newly opened securities account. The investor should transfer the collateralized margin securities from the ordinary securities account to the credit securities account before the financing and securities financing transactions. After the financing and securities financing transaction is completed, the investor can transfer the collateralized securities back to the ordinary securities account. During the period of financing and financing transactions, with the consent of the brokerage firm, the investor may transfer the guaranteed securities exceeding 300% of the maintenance guarantee ratio back to the ordinary securities account.

(2) Opening a credit fund account

After signing a financing and securities financing contract with a brokerage firm, an investor is required to sign a third-party depository agreement for customer credit funds with the brokerage firm and a commercial bank. The brokerage firm shall notify the third-party depository bank to open a real-name credit fund account for the investor based on the investor's application. The investor's credit fund account is a secondary account of the brokerage firm's customer credit transaction guarantee fund account, which is used to record the detailed data of the guarantee fund deposited by the investor. Investors can only open one credit fund account.

After the above steps, the investor's account opening procedures at the brokerage firm have been completed. When the investor has submitted a sufficient amount of collateral, you can begin to finance the securities trading.