Shenzhen market and China clearing corp amend repo and seclending rules

With permission from China Securities Regulatory Commission, Shenzhen Stock Exchange and China Securities Depository and Clearing Corporation (CSDS) amended the measures on Stock Pledge and Repo Transactions and Registration and Clearing. A trial version was revised in 2017, and the amended version was released on January 12. The Measures will take effect as of March 12, 2018.

Market players generally held in consultations that relevant amendments would help fortify the role of Stock Pledge and Repo Transactions in serving the real economy, prevent and control business risksm and regulate business operation. The parties also offered advices and suggestions on specific provisions. After careful research, SZSE and CSDS adopted some of the suggestions: first, specifying that a dedicated account be opened by financing parties in a bank designated by the securities companies so as to improve the operability and management of the dedicated accounts; second, allowing venture capital funds supported by certain policies to serve as financing parties with an aim to encourage innovation and entrepreneurship; third, improving the expression of some provisions.

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