Legislation roundup: Mobile apps, margin trading and securities companies

See the digest for more details.

Further reading

China imposes mobile app controls

IT regulator reinforces order in mobile app market

Provisions for the Administration of the Information Services of Mobile Internet Application Programs

Capital markets

Shanghai Stock Exchange, Circular on Amending Several Provisions of the <Implementing Rules for Margin Financing and Short Sale of Securities on the Shanghai Stock Exchange> Relating to the Maintenance Margin

上海证券交易所关于修改《上海证券交易所融资融券交易实施细则》涉及维持担保比例若干条款的通知

Shanghai Stock Exchange, Circular on Matters Relevant to Expanding the Scope of Stocks That May Be the Subject of Margin Financing and Short Sale of Securities

上海证券交易所关于扩大融资融券标的股票范围相关事项的通知

Shenzhen Stock Exchange, Circular on Amending Several Provisions of the <Implementing Rules for Margin Financing and Short Sale of Securities on the Shenzhen Stock Exchange> Relating to the Maintenance Margin

深圳证券交易所关于修改《深圳证券交易所融资融券交易实施细则》涉及维持担保比例若干条款的通知

The uniform restriction on the minimum maintenance margin not being less than 130% is abolished, replaced by an agreement between the securities company and its client to specify the minimum maintenance margin at their own discretion based on the client's creditworthiness, the quality of the collateral and the securities company's risk bearing capacity.

The quantity of stocks that may be used as the subject of margin financing and short sale of securities is increased from 950 to 1,600.

Further reading

Not falling short: The rise of short selling in China

PRC Securities Law (Revised in 2014)

Rules on the Re-lending Business (Trial Implementation)

Shanghai Stock Exchange, Implementing Measures for Securities Lending Transactions of the Re-lending Business (Trial Implementation)

Shenzhen Stock Exchange, Implementing Measures for Securities Lending Transactions of the Re-lending Business (Trial Implementation)

Guidelines for the Involvement in the Securities Lending of the Re-lending Business by Publicly Offered Securities Investment Funds (Trial Implementation)

China Securities Regulatory Commission, Criteria for Calculating the Risk Control Indicators of Securities Companies (Draft for Comments)

中国证券监督管理委员会证券公司风险控制指标计算标准 (征求意见稿)

The criteria for calculating the risk control indicators for investment in products such as constituent shares, equity-type index funds and policy financial bonds are appropriately relaxed.

In respect of the special characteristics of business such as share pledging and private asset management, and the risk features of various financial products, the criteria for calculating the relevant indicators are improved.

See the digest for more details.

Further reading

Regulations for Handling Risks of Securities Companies

Measures for the Administration of Foreign-invested Securities Companies

Taking China's Asset Management to the Next Level