China Sets Up Securities Clearing Co.The China Securities Depository & Clearing Co., Ltd was established here Friday with the approval of the China Securities Regulatory Commission (CSRC), China's top securities market watchdog.The company was jointly funded by the Shanghai Stock Exchange and the Shenzhen Stock Exchange, with a registered capital of 600 million yuan. The company's business scope includes the establishment and management of securities accounts and clearing accounts, securities depository and transfer of ownership, securities trust, clearing and payments of securities and capital, and agent services such as allocation of equity entrusted by the issuer. Zhou Xiaochuan, CSRC chairman, said that the establishment of a "unified" and "centralized" securities depository and clearing company is a basic infrastructure project for the securities market. "It will not only meet the increasing demands of standardization on the securities market, but also help guard against market risks as China opens up its securities market," he said. The previous two depository and clearing companies of the Shanghai and Shenzhen bourses will become the new company's subsidiaries, with the separate systems to be integrated. Jin Ying, chairwoman and general manager of the new company, said that the current depository and clearing system no longer suits the development of the market for lack of efficiency and risk-proof measures, and comparatively high operation costs. The new system will adopt a unified set of rules and procedures, which will enhance management efficiency, resolve the separating status of the two working systems and improve market flexibility, she added. More than 100 representatives from securities and financial institutions, and government organizations were present at Friday's opening ceremony. |
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