Supreme People's Court, Supreme People's Procuratorate, Ministry of Public Security and China Securities Regulatory Commission, Opinions on Further Regulating the Freezing of the Pledged Stock of Listed Companies by People's Courts

Promulgated: March 1, 2021

Effective: July 1, 2021

Main contents: Where, after pledged stock is marked in the system, the pledgee applies, on the strength of materials evidencing the existence of its pledge-secured claim, satisfaction of the conditions for realization of its pledge-secured claim, etc., to the people's court to realize the stock to the extent of the pledge-secured claim by means such as centralized bidding on a stock exchange or block trade, the same shall be permitted unless otherwise provided in laws, judicial interpretations, etc. Once the people's court freezes the debtor's cash account with the securities company to the extent of the total amount of the pledge-secured claim amount, case claim amount and enforcement charges, it shall notify the securities depository and clearing institution or the securities company in writing in a timely manner to switch the corresponding pledged stock in the system to saleable.