The impact of securities firm failures on customer funds, bank margin, and insurance mechanisms in China, Hong Kong, Singapore, and the United States: China Customer assets (funds and securities) need to be isolated from the securities firm's own assets and stored in a third-party custodian bank (such as China Securities Depository and Clearing Corporation). In theory, customer assets are not affected by the bankruptcy of securities firms and can be transferred to other securities firms through regulatory agencies. If securities firms misappropriate customer assets (illegally), it may result in partial losses. Investors can apply for compensation through the Securities Investor Protection Fund, with a maximum limit of 500000 RMB per person. Any excess may not be recoverable. bank guarantee Securities firms are required to pay settlement reserves to the China Securities Depository and Clearing Corporation for trading clearing and risk prevention, but this is not a direct guarantee of customer assets as "bank margin". Insurance There is no mandatory commercial insurance, and customer asset protection relies on third-party custody and investor protection funds. Hong Kong According to the regulations of the Securities and Futures Commission (SFC) in Hong Kong, client assets must be segregated from brokerage assets and stored in separate accounts. If a securities firm goes bankrupt, customer assets can usually be transferred to other securities firms. Hong Kong has an "Investor Compensation Fund" (ICF), which allows securities firms to apply for compensation if they go bankrupt and are unable to return their clients' assets, with a maximum limit of HKD 500000 per person. The scope of compensation includes losses caused by securities fraud or bankruptcy. bank guarantee Securities firms are required to pay margin to the Hong Kong Stock Exchange (HKEX) for clearing and risk management purposes, but do not directly safeguard client assets. Insurance There is no mandatory commercial insurance, and customer asset protection mainly relies on isolation systems and compensation funds. Singapore According to the regulations of the Monetary Authority of Singapore (MAS), client assets must be segregated from brokerage assets and stored in trust accounts. If a securities firm goes bankrupt, customer assets can usually be transferred to other securities firms. Singapore has an Investor Compensation Scheme (FICS) that compensates for losses caused by securities firms' bankruptcy or fraud, with a maximum limit of SGD 50000 per person, limited to securities firms regulated by MAS. bank guarantee Securities firms are required to pay clearing margin to the Singapore Exchange (SGX) for trading clearing, but it does not directly protect customer assets. Insurance There is no mandatory commercial insurance, and customer asset protection mainly relies on isolation systems and compensation plans. U.S.A According to the regulations of the US Securities and Exchange Commission (SEC), client assets must be segregated from brokerage assets and stored in separate accounts. If a securities firm goes bankrupt, customer assets can usually be transferred to other securities firms. The United States has a Securities Investor Protection Corporation (SIPC), and if a securities firm goes bankrupt, clients can apply for compensation up to a maximum of $500000 per person (including a cash limit of $250000). If the account balance exceeds the limit, the remaining assets can be recovered through liquidation procedures, but there may be losses. bank guarantee Securities firms are required to pay margin to clearing institutions (such as OCC) for transaction clearing, but do not directly protect customer assets. Insurance SIPC is similar to an insurance mechanism, but only applicable to securities firms regulated by the SEC. Some securities firms may purchase additional private insurance (such as FDIC insurance to protect cash), but it is not mandatory. Why do general customers lose their funds after the collapse of cryptocurrency exchanges?