Regulations on Stock Ownership Management of Securities Companies

On July 5, China Securities Regulatory Commission issued the Regulations on Stock Ownership Management of Securities Companies, which differentiates between securities companies engaged in conventional traditional securities business (such as securities brokerage, securities investment consulting, financial consultant, securities underwriting and sponsorship, securities self-management, etc.) and those engaged in business with significant leverage nature, and there are many transactions among them. Securities companies with cross-risk (such as stock option market making, over-the-counter derivatives, stock pledge repurchase, etc.), shall stipulate shareholder conditions separately. Provisions prohibit the entrusted funds and other non-proprietary funds into shares. Shareholders may not pledge their shares during theRead More →