CHINA: Risk Management Rules Revised On Securities Firms

Thursday April 21 2016

News Source: Global Exchanges

Focus: Trading Rules

Type: General

Country: China

Link: http://www.szse.cn/main/files/2016/04/18/SZSE%20Weekly%20Bulletin%2018%20April%2C2016%20(Issue%2012).pdf

On 15^th April 2016, CSRC released its draft plan to change the way it calculates net capital and risk capital requirement of securities firms. The revised calculation will see the industry`s net capital increase by around 20% and that of risk reserve capital rise two times, which will make the risk coverage indicator more “reasonable”.

Other re-adjustments include lowering the ratios of net capital to liabilities and net capital to net assets.

Click on the link above for further details.