100+ Free China Securities Analyst Competency Test Practice Questions

Prepare for the Securities Analyst Professional Competence Level Evaluation Test — Publishing Securities Research Reports (证券分析师专业能力水平评价测试—发布证券研究报告业务) exam with instant access — no signup required.

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2026 Statistics

Key Facts: China Securities Analyst Competency Test Exam

180 Minutes

Examination duration for the computer-based test

SAC 2026 Examination Notice

120 Questions

Total objective questions on the official examination

SAC Test Syllabus

60 / 100

Passing score threshold (60% standard)

Securities Association of China

¥61 RMB

Official test registration fee per subject

SAC Examination Portal

SAC / CSRC

Examination Administrator and Regulatory Body

Securities Association of China

100 Items

Practice questions with step-by-step calculations in this bank

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SAC's Publishing Securities Research Reports Business test is a 120-question, 180-minute specialized competence evaluation with a 60% correct basic standard and a ¥61 fee in current notices. It covers research compliance, macroeconomics, industry analysis, financial statements, and valuation. Passing alone does not grant analyst registration.

Sample China Securities Analyst Competency Test Practice Questions

Try these sample questions to test your China Securities Analyst Competency Test exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under the CSRC Provisions on Publishing Securities Research Reports (发布证券研究报告暂行规定), what is the core regulatory distinction between "Publishing Securities Research Reports" (发布证券研究报告业务) and "Securities Investment Advisory" (证券投资顾问业务)?

A.Publishing Securities Research Reports involves non-specific general research distributed to institutional or public investors, whereas Securities Investment Advisory involves tailored investment advice provided directly to specific retail/wealth clients

B.Publishing Securities Research Reports is restricted solely to bond markets, while Securities Investment Advisory covers equity markets

C.Securities Investment Advisory requires a PhD in finance, whereas publishing research reports has no academic requirement

D.Research reports can only be published by commercial banks, whereas investment advisory is exclusively performed by fund management companies

Explanation: Under CSRC regulations, Publishing Securities Research Reports (发布证券研究报告) is an institutional practice where securities firms or advisory institutions distribute standardized research reports, valuations, and investment ratings to institutional clients or the investing public without tailoring to individual investor risk profiles. In contrast, Securities Investment Advisory (证券投资顾问业务) involves providing personalized investment advice, portfolio asset allocation, and specific trade recommendations directly to specific contracted clients based on their individualized suitability evaluations.

2A securities professional has passed the SAC Securities Analyst Competency Test (发布证券研究报告业务). Under SAC Registration Rules for Securities Practitioners (证券执业人员注册管理办法), what additional statutory requirement must be met before formally registering as a practicing Securities Analyst (证券分析师)?

A.The individual must be formally employed by a licensed securities company or investment advisory firm and possess at least two years of securities business practice experience

B.The individual must have personally published at least ten peer-reviewed academic papers in SSCI finance journals

C.The individual must have worked as an investment banking sponsor representative (保荐代表人) for at least three years

D.The individual must hold at least 5% equity interest in the employing securities institution

Explanation: Under the Securities Association of China (SAC) registration guidelines, passing the competency examination satisfies the testing qualification. To obtain the formal Securities Analyst Practicing Certificate (证券投资咨询执业证书 — 证券分析师), the candidate must be employed by a licensed securities company or investment advisory institution, possess a college diploma or above, maintain good professional ethics, and have accumulated at least two full years of securities business experience.

3Under the SAC Guidelines on Chinese Wall in Securities Companies (证券公司信息隔离墙制度指引), which of the following mechanisms is mandatory between the Research Department (研究部门) and the Investment Banking Department (投资银行部门)?

A.Maintaining physical, personnel, system, and informational segregation to prevent the unauthorized transfer of non-public price-sensitive information

B.Allowing investment banking directors to directly edit the earnings models and target prices of research reports prior to publication

C.Permitting research analysts to share pre-publication draft reports with investment banking deal teams to align commercial messaging

D.Co-locating equity research analysts and M&A advisory teams in the same open office floor without badge access controls

Explanation: The Chinese Wall (信息隔离墙) is a comprehensive risk control system consisting of physical segregation, independent personnel management, separate IT network access, and strict information barrier controls. Its primary objective is to prevent the illicit flow of material non-public information (MNPI / 未公开重大信息) between confidential business lines (such as investment banking and sponsor business) and public business lines (such as sell-side research and secondary market sales).

4An equity research analyst is requested to participate in a confidential due diligence project for an upcoming M&A transaction led by the firm's investment banking team. Under the Chinese Wall regulations, what formal "Wall-Crossing" (跨墙) procedure must be completed?

A.Prior written approval must be obtained from the Compliance Department, the analyst must be logged into the wall-crossing registry, and the analyst is strictly prohibited from publishing research or discussing the target company during the wall-crossing period

B.The analyst only needs verbal permission from their research department team lead, and may continue publishing regular updates on the target stock

C.The analyst must immediately resign from the securities firm and re-apply as an investment banking associate

D.The analyst can participate freely provided that they execute trades on the target stock through personal accounts within 24 hours

Explanation: Under the SAC Chinese Wall guidelines, when a research analyst crosses the wall (跨墙) to assist investment banking or proprietary business with confidential projects, the firm must obtain prior approval from the Chief Compliance Officer / Compliance Department, document the wall-crossing scope, duration, and rationale in the compliance registry (跨墙人员名单及档案), and treat the analyst as an insider subject to strict information confidentiality. During the wall-crossing period and until the material information is publicly disclosed or the deal is terminated, the analyst is strictly prohibited from writing or publishing research on the subject company.

5Under SAC self-regulatory rules on publishing securities research, what principle applies when a securities firm is also the lead underwriter or sponsor for an issuer?

A.The firm must enforce the applicable research restriction period, information barriers, independent review, and prominent conflict disclosure instead of using research to promote the underwriting mandate

B.The lead underwriter must publish at least three "Strong Buy" reports every week during the roadshow to support the issue price

C.The quiet period only applies to foreign institutional investors, allowing domestic sell-side analysts to publish freely

D.The underwriting quiet period lasts for exactly 10 years following the initial public offering

Explanation: Underwriting creates a direct institutional conflict. The firm must apply the research-restriction period and procedures prescribed for the relevant offering, maintain information barriers, keep research independent from deal promotion, and disclose the underwriting relationship where publication is permitted. Fixed U.S.-style 40-day or 25-day figures should not be imported into a Chinese rule question without a directly applicable SAC rule.

6A securities firm is retained as the lead underwriter for a listed client's follow-on private placement (向特定对象发行股票 / 再融资). Under SAC regulations, from what point is the research department restricted from publishing research reports on that listed client?

A.From the date the firm enters into the underwriting or financial advisory agreement (or when the firm enters into substantive project negotiations) until the offering is completed and the quiet period expires

B.Only on the exact morning when the new shares are registered with CSDC (中国结算)

C.Only after the listed company's stock price falls below its net asset value per share

D.There are no quiet period restrictions on follow-on refinancing or rights offerings

Explanation: Under SAC Code of Conduct for Securities Analysts, when a securities firm undertakes underwriting, sponsor, or financial advisory mandates for refinancing, mergers, or asset restructurings, the research restriction begins from the date the underwriting agreement is signed (or from the inception of substantive confidential discussions) and continues until the public disclosure of the project outcome or expiration of the post-offering quiet period.

7Under the SAC Analyst Practice Code of Conduct (证券分析师执业行为准则), which of the following rules governs personal securities trading by registered securities analysts and their immediate family members?

A.Analysts must declare accounts and interests, comply with the firm's approved-list and blackout controls, and may not trade ahead of or against unreleased research or use another person's account to evade those controls

B.Analysts may freely day-trade covered stocks without reporting to their firm's compliance department

C.Analysts are encouraged to borrow client funds to take leveraged options positions on covered stocks

D.Immediate family members of analysts may trade on unreleased research recommendations without restriction

Explanation: Research institutions must control analysts' personal dealing through account declarations, conflicts review, approved or restricted lists, and publication-related blackout arrangements. Analysts may not front-run unpublished views, trade through nominee accounts, or use family accounts to evade controls. The exact internal blackout period must come from the applicable rule and firm policy rather than an assumed universal 7-day/5-day schedule.

8An equity analyst writes a research report recommending a "Buy" on Stock K. Three days before publication, the analyst buys 50,000 shares in a relative's account, then sells after the recommendation moves the price. Under Articles 55 and 192 of the PRC Securities Law, this conduct is classified as:

A.Scalping / "Front-Running with Recommendation" (抢帽子交易), which constitutes illegal market manipulation subject to confiscation of illegal gains, heavy administrative fines, and criminal liability

B.Standard market-making liquidity provision permitted under exchange trading rules

C.Lawful high-frequency quantitative arbitrage strategy

D.Authorized employee pre-positioning exempt from regulatory oversight

Explanation: Article 55(6) of the PRC Securities Law prohibits publicly evaluating, forecasting, or recommending a security and then conducting a reverse trade to influence or intend to influence price or volume. This recommendation-based 'scalping' is market manipulation; Article 192 provides administrative sanctions, and criminal liability may apply when the criminal elements are met.

9A securities firm's proprietary trading department (自营部门) holds 1.2% of the outstanding shares of listed Company T. Under CSRC Provisions on Publishing Securities Research Reports, what disclosure must appear in a research report written by the firm's equity analyst covering Company T?

A.The research report must prominently disclose that the securities firm holds 1% or more of the subject company's total issued shares, fully disclosing potential institutional conflicts of interest

B.No disclosure is required because the holding belongs to the firm rather than the individual analyst

C.The holding need be disclosed only when the proprietary desk traded during the 30 days before publication

D.The report need disclose the holding only if it exceeds 5% of the subject company's shares

Explanation: Under CSRC and SAC disclosure regulations, if a securities company or its affiliated entities collectively hold 1% or more of the listed company's issued shares, or if the firm has provided investment banking / financial advisory services to the company within the past 12 months, this institutional interest must be explicitly and prominently disclosed in the research report to alert investors to potential conflicts of interest.

10Under CSRC and SAC rules safeguarding analyst independence, how is a securities firm strictly prohibited from structuring an analyst's annual performance evaluation and compensation?

A.Tying analyst compensation directly to specific investment banking deal fees, underwriting revenues, or proprietary trading profits generated from covered companies

B.Evaluating analysts based on the quality of their research reports, professional ethics, compliance record, and client service feedback

C.Assessing the depth and rigor of the analyst's financial models and industry analysis

D.Considering institutional investor vote rankings and commission generation from institutional sales

Explanation: CSRC and SAC rules strictly mandate analyst independence (独立性). A securities company must not link research analysts' performance metrics, bonuses, or remuneration directly to investment banking project completions, underwriting fees, or proprietary trading returns. Analyst compensation must be determined primarily by research report quality, analytical rigor, compliance conduct, and institutional research service contributions.

About the China Securities Analyst Competency Test Exam

Publishing Securities Research Reports Business (发布证券研究报告业务) is SAC's specialized level-evaluation test for securities-research knowledge. Current SAC rules treat the result as evidence or a reference for professional competence rather than an admission or licensing prerequisite. This English-language MCQ adaptation covers research compliance, macro and industry analysis, financial statements, and valuation; it is not an official translation, format simulation, or analyst registration.

Assessment

120 computer-based objective questions, including single-choice, multiple-choice, judgment, and comprehensive items, in 180 minutes; at least 60% correct meets the basic standard.

Time Limit

180 minutes (3 hours)

Passing Score

60%

Exam Fee

¥61 RMB (Securities Association of China (中国证券业协会 / SAC))

China Securities Analyst Competency Test Exam Content Outline

20%

Research Compliance, Ethics & Chinese Wall (证券研究报告业务合规与职业道德)

CSRC & SAC Provisions on Publishing Securities Research Reports, analyst qualification registration, analyst independence, Chinese Wall information barrier protocols, wall-crossing governance, underwriting quiet/blackout periods, personal trading restrictions, institutional conflict of interest disclosures, and roadshow/media appearance standards.

20%

Macroeconomic & Market Strategy Analysis (宏观经济与市场策略分析)

Business cycle phases, PBOC monetary policy tools (RRR, OMO, MLF, LPR), liquidity aggregates (M1, M2, Total Social Financing TSF, M1-M2 scissors gap), yield curve term structure dynamics, equity risk premium (ERP) bands, CPI-PPI scissors gap, inventory cycles, and Merrill Lynch investment clock asset allocation.

20%

Industry Analysis & Competitive Structure (行业分析与竞争格局)

Industry lifecycle stages (introduction, growth, maturity, decline), Porter's Five Forces, value chain upstream/downstream margin migration, economic moats (switching costs, network effects), industry concentration metrics (CR4, HHI), cost curves, capacity utilization operating leverage, and China's industrial upgrading.

20%

Financial Statement Analysis & Quality of Earnings (财务报表分析与盈余质量)

Balance sheet, income statement, and cash flow statement interactions; 3-factor and 5-factor DuPont ROE decomposition; Cash Conversion Cycle (CCC = DSO + DIO - DPO); earnings quality and accruals analysis; R&D capitalization vs expensing (CAS 6); goodwill impairment testing (CAS 8); and revenue recognition red flags.

20%

Equity Valuation Modeling & Target Price Setting (股票估值建模与目标价测算)

Absolute valuation models (FCFF, FCFE, Gordon Growth DDM, multi-stage DDM, WACC calculation, terminal value perpetuity/exit multiple), relative valuation multiples (P/E, forward P/E, PEG, P/B, P/S, EV/EBITDA), sum-of-the-parts (SOTP) conglomerate valuation, sensitivity analysis, and target price / rating setting.

How to Pass the China Securities Analyst Competency Test Exam

What You Need to Know

Passing score: 60%
Assessment: 120 computer-based objective questions, including single-choice, multiple-choice, judgment, and comprehensive items, in 180 minutes; at least 60% correct meets the basic standard.
Time limit: 180 minutes (3 hours)
Exam fee: ¥61 RMB

Keys to Passing

Work through all 100 available questions
Review every answer and explanation
Track weak areas and revisit them
Use our AI tutor for tough concepts

China Securities Analyst Competency Test Study Tips from Top Performers

1Master Chinese Wall and compliance rules: distinguish current Chinese regulatory requirements, firm policies, underwriting conflict controls, personal-trading restrictions, and required disclosures rather than importing foreign blackout periods.

2Understand China's macro liquidity aggregates: learn the definitions and components of M0, M1, M2, and Total Social Financing (TSF), interpret the M1-M2 scissors gap, and use the current market-based LPR quotation framework rather than a mechanical MLF-plus-spread formula.

3Internalize the Merrill Lynch Investment Clock and Equity Risk Premium (ERP): Be ready to allocate assets across Reflation, Recovery, Overheat, and Stagflation, and calculate ERP using Index P/E inverse minus 10-year China Government Bond yields.

4Practice multi-step financial calculations: Drill 3-factor and 5-factor DuPont ROE decompositions, Cash Conversion Cycle (CCC = DSO + DIO - DPO), and Goodwill Impairment comparisons under CAS standards.

5Master DCF, WACC, and multiple valuations: Calculate CAPM cost of equity, after-tax WACC, FCFF from EBIT, Gordon Growth DDM share prices, PEG ratios, EV/EBITDA multiples, and Sum-of-the-Parts (SOTP) enterprise values.

Frequently Asked Questions

What is the China Securities Analyst Competency Test?

It is SAC's specialized level-evaluation test for knowledge used in publishing securities research reports. A result meeting the basic standard is competence evidence and does not itself authorize a person to author, review, or sign reports.

What is the format and duration of the test?

The test is a 180-minute CBT with 120 objective questions, including single-choice, multiple-choice, judgment, and comprehensive items. At least 60% correct meets the basic standard. Current public SAC materials reviewed for this bank do not expressly enumerate delivery languages.

What is the exam registration fee?

The registration fee is ¥61 RMB per subject, paid online through the official SAC examination registration portal.

What are the prerequisite requirements to take the analyst test?

Candidates generally need a valid general-business level-evaluation result or another status recognized by the current SAC rules. The applicable education, employment, and public-test conditions should be checked in the notice for the testing window; analyst registration is a separate process.

How do I obtain the formal Securities Analyst Practicing Certificate after passing?

A result meeting the basic standard is one form of professional-competence evidence. Analyst registration is submitted by an eligible employer and separately requires the role-specific education, experience, integrity, and competence conditions in the current SAC rules.