State Council, Regulations for the Oversight of Securities Companies
国务院证券公司监督管理条例
State Council regulations pave the way for margin trading and short sale of securities.
Date:
July 2008
CLP Reference: 3700/08.04.23(1)
Promulgated: 23 April 2008
Effective: 01 June 2008
Keywords (click to search): [securities companies] [securities houses] [capital contributions] [margin trading] [short sale of securities ]
Promulgated: April 23 2008
Effective: June 1 2008
Applicability: The “business of margin trading and short sale of securities” refers to the securities companies’ business activities of lending funds to clients for purchase of securities or lending securities to clients for selling, and the provision of the corresponding collateral by clients, in the course of securities transactions conducted in stock exchanges or other stock trading premises approved by the State Council (Article 48).
Main Contents: Shareholders of securities companies shall make capital contributions in currency or in non-currency property required for business operations by the company. The total amount of capital contributions of the shareholders in the form of non-currency property may not exceed 30% of the company’s registered capital. The aforementioned provision shall not apply to the conversion of claims of the company’s creditors to company equity in the course of the company’s operations. Capital contributions of...
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