Full text of the State Administration for Industry and Commerce’s reply on the basis of punishment for illegal futures operations, Gongshang Shizi [1997] No. 195

Shaanxi Provincial Administration for Industry and Commerce:

Your bureau's "Request for Instructions on the Basis for Penalties for Illegal Futures Operations" (Shaanxi Industrial and Commercial Law Letter [1997] No. 010) has been received. After research. The reply is as follows:

1. The industrial and commercial administrative agencies must strictly implement Guobanfa [1994] No. 69 document and persist in investigating and punishing various illegal futures trading activities. According to the provisions of Guobanfa [1994] No. 69, all types of futures consulting institutions, investment service enterprises and institutions are not allowed to engage in futures agency business. Violators will be fined individually or in combination depending on the severity of the case, and their illegal gains will be confiscated until Business license revoked.

2. In the process of investigating and punishing illegal futures trading, the industrial and commercial administrative authorities may refer to the "illegal income" issue from illegal futures trading by referring to the regulations jointly issued by the State Administration of Foreign Exchange, the China Securities Regulatory Commission and the State Administration for Industry and Commerce. [95] The relevant provisions of Huiguanhanzi Document No. 191 shall be recognized.

July 26, 1997