China Securities Regulatory Commission, Questions on the Provision of Security by Securities Companies Circular

中国证券监督管理委员会关于证券公司担保问题的通知

June 02, 2001 | BY

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Issued: April 24 2001Main contents: The Circular sets forth restrictions on the provision of security by securities companies. For instance, the net capital…

Clp Reference: 3700/01.04.24 Promulgated: 2001-04-24

Issued: April 24 2001

Main contents: The Circular sets forth restrictions on the provision of security by securities companies. For instance, the net capital of comprehensive securities companies cannot be less than Rmb200 million (Item One). The amount of security provided by a securities company cannot exceed 20% of its net assets (Item Two). Securities companies are prohibited from providing credit security to enterprises during the distribution of their shares (Item Three). Securities companies shall not provide credit security to clients who aim to buy or sell shares (Item Five).
Related legislation: China Securities Regulatory Commission, Adjustment of the Rules for Calculation of Net Capital of Securities Companies Circular, Sep 23 2000, CLP 2000 No.9 p9 and Prohibition of Financing and Disguised Financing in Distribution of Shares Industry Agreement

clp reference:3700/01.04.24promulgated:2001-04-24

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