Advanced Search
English Home
Headline
Opinion
China
World
Business
Sports
Education
Sci-Tech
Culture
FM Remarks
Friendly Contacts
News in
World Media
Features
Message Board
Voice of Readers
Feedback
Employment Opportunity

Monday, February 14, 2000, updated at 11:23(GMT+8)
Business China Allows Securities Firms to Hypothecate Stocks

The People's Bank of China and the China Securities Regulatory Commission jointly issued a procedure Feburary 14 on the management of stock hypothecation by securities firms, allowing qualified securities firms to borrow money from commercial banks by hypothecating the stocks they hold.

The procedure regulates that the collateral security must be A shares and shares in securities investment fund listed on the domestic stock markets. The borrowers must be head offices of securities firms while the creditors are State-owned commercial banks, their authorized branches and the head office of other commercial banks.

The procedure also regulates that the outstanding term of the capital borrowed through stock hypothecation is six months at maximum. The amount of the loan should not exceed 60 percent of the market value of the stocks being hypothecated.

The procedure also includes provisions on the qualification of the borrower and the creditor, as well as detailed methods and regulations on the handling of stock hypothecation.

Printer-friendly Version In This Section
  • Shanghai Speeds up Development of High-Tech Industries

  • World's Largest Thenardite Exporter Invests in China

  • Hi-Tech Zones Become Major Tax Payer in Jiangsu

  • Opening-Up Efforts Pay Off In Qingdao

  • Chinese Insurer to Take on Competition

  • Overseas-Funded Firms Report Trade Surge

  • Back to top
    Copyright by People's Daily Online, All rights reserved




    Relevant Stories
  • China Releases Proposal on Agriculture and Rural Economic Work


  • Fee Cuts Replace Fuel Tax Effort


  • Trademark, ad supervision to tighten




  • Internet Links