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)
August 28, 2019 | BY
Susan MokRisk control on investments of securities companies is loosened
Issued: August 9, 2019
Main contents: 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.
In light of market development practice, the criteria for calculating the risk control indicators for new business and new products are clearly set forth.
With a view to supporting securities companies in enhancing their comprehensive risk management level, the adjustment factor for the risk capital reserve of securities companies with a Type A AA rating or above for three years in succession is set at 0.5; and it is expressly specified that for securities companies that are subject to consolidated oversight, the relevant criteria for calculating their risk control indicators may be specified separately by the CSRC.
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