Notice of Issuing the Standards for Securities Pledge Registration Elements
- Area of Law： Securities
- Level of Authority： Industry Regulations
- Date issued：06-30-2017
- Effective Date：06-30-2017
- Status： Effective
- Issuing Authority： China Securities Depository & Clearing Corporation Limited
Notice of China Securities
Depository and Clearing Co., Ltd. on Issuing the Standards for Securities
Pledge Registration Elements
All market participants:
For the purposes of carrying out the?Several Provisions on Shareholding Reduction by Shareholders, Directors, Supervisors and Senior Executives of Listed Companies (Announcement No. 9 , CSRC), further regulating pledge registration is stock exchanges and over-the-counter market, preventing securities pledge financing risks, and supporting the development of real economy, the standards for securities pledge registration elements are hereby developed and issued. All market participants shall, when handling securities pledge registration, declare five types of basic elements, and the specific content and requirements are as follows:
I. Information on Both Parties to Pledge
(1) Name of the pledgor
“Name of the pledgor” means the name of the investor that applies for handling pledge registration of the securities held. It shall be the full name and be consistent with the name on the identity certificate provided by the pledgor.
(2) Securities account number of the pledgor
“Securities account number of the pledgor” means the securities account number of the pledged securities held by the pledgor.
(3) Name of the pledgee
“Name of the pledgee” means the name of the subject that enjoys the right to pledge of the pledged securities as agreed upon in the pledge contract. It shall be the full name and be consistent with the name on the identity certificate provided by the pledgee.
(4) Types of identity certificates of the pledgee
“Types of identity certificates of the pledgee” means the types of certificates provided by the competent authority to the pledgee to prove the subject identity thereof, which cover the resident identity certificate, business license issued by the administrative department for industry and commerce, registration certificate of the mass organization as a legal person, and the registration certificate of the public institution as a legal person, among others.
(5) Number of the identity certificate of the pledgee
“Number of the identity certificate of the pledgee” means the number of the certificate held by the pledgee to prove the subject identity thereof.
II. Information on Pledged Securities
(6) Abbreviation of securities
“Abbreviation of securities” means the abbreviation of pledged securities. It shall be consistent with the abbreviation determined by the trading venue.
(7) Securities code
“Securities code” means the listing (quotation) code of pledged securities on the stock exchange. It shall be consistent with the code determined by the trading venue.
(8) Number of securities
“Number of securities” means the number of securities on which both parties to pledge apply for pledge registration.
(9) Custody units
“Custody units” means the number of basic business units under the custody of pledged securities through which securities companies participate in registration and settlement (since designated trading rules are carried out in the Shanghai market, custody units are also named as designated trading units in the Shanghai market).
(10) Types of securities
“Types of securities” means the types of pledged securities which are categorized according to the nature of rights represented by pledged securities, including stocks, bonds, and funds, among others. Stocks are categorized into non-tradable shares, restricted tradable shares, and tradable shares according to the circulation thereof.
III. Information on Pledge Contracts
(11) Number of pledge contract
“Number of pledge contract” means the number of contract entered into by both parties to pledge on the matters concerning the pledge of securities.
(12) Financing amount
“Financing amount” means the amount of funds borrowed by the pledgor secured by the pledge of securities or a third party.
Both parties to pledge shall declare the remaining financing amount when applying for the partial removal of pledge registration.
(13) Financing interest rate
“Financing interest rate” means the ratio of interest amount to the financing amount. It shall be annual interest rate calculated on an annual basis.
(14) Financing term
“Financing term” means the term agreed upon by both parties to financing from the borrowing of funds to the repayment of funds.
(15) Financing orientation
“Financing orientation” means the intended use of funds borrowed by the pledgor for handling the pledge of securities, including production and business operation, supplementation of working capital, equity investment, creditors' investment, real estate investment, securities trading on the secondary market, repayment of debts, and personal consumption, among others.
IV. Information on Risk Management
(16) Warning line
“Warning line” means the ratio agreed upon by both parties to pledge, if the ratio of market value of pledged securities to the financing amount is lower than the warning line during the pledge period, the pledgee may remind the pledgor of the risks arising from the decline of securities price.
(17) Open line
“Open line” means the ratio agreed upon by both parties to pledge, if the ratio of market value of pledged securities to the financing amount is lower than the open line during the pledge period, the pledgee has the right to dispose of the pledged securities as agreed upon in the agreement.
V. Information on Application Date
(18) Application date of pledge registration
“Application date of pledge registration” means the date when both parties to pledge file the application for pledge registration.
In the aforesaid 18 pledge registration elements, financing amount, financing interest rate, financing term, financing orientation, warning line and open line (pledge registration elements as mentioned in items (12) to (17), hereinafter referred to as “six elements relating to financing”) will not be reflected in the securities pledge registration certificate issued by China Securities Depository and Clearing Co., Ltd. If it has been specified in the pledge contract that securities pledge is not conducted for financing security, both parties to pledge are not required to enter six elements relating to financing.
June 30, 2017