Department of Intermediary Supervision of the China Securities Regulatory Commission, Issues Relevant to Issue of Short-term Bonds by Securities Companies Circular

Issued: January 11 2005

Main contents: Securities companies intending to issue short-term bonds shall submit certain materials to certify their fulfilment of the basic requirements for the issuance including: (1) basic particulars of the company's proposed issuance of short-term bonds, including its objectives, scheme of arrangement, use of proceeds and the company's net capital position in the most recent three months, etc.; (2) details on the custody of corporate clients' transaction settlement funds; (3) description of the company's internal control system and its implementation; (4) rules adopted by the company relating to asset and liability valuation; and (5) the company's appraisal and control of equity risks.
Related legislation: Administration of Short-term Bonds of Securities Companies Procedures, Oct 18 2004, CLP 2004 No.10 p10 and People's Bank of China, China Securities Regulatory Commission and China Banking Regulatory Commission, «Administration of Short-term Bonds of Securities Companies Procedures»Memorandum of Understanding