Decision on Amending the Provisions on the Standards for Calculating
Risk Capital Reserves of Securities Companies
It is hereby decided to amend the Provisions on the Standards for Calculating
Risk Capital Reserves of Securities Companies (Announcement No. 28 [2008]
of the China Securities Regulatory Commission) as follows:
I. Item (1) of Article 1 is amended to read: “For engaging in securities
brokerage business, securities companies shall calculate the risk capital
reserves for the brokerage business at 2% of the total amount of client
transaction settlement funds placed under custody.”
II. Item (2) of Article 1 is amended to read: “For engaging in proprietary
business, securities companies shall calculate the risk capital reserves at 30%,
15% and 8% of investment scales respectively for securities derivatives, equity
securities and fixed income securities that have not been hedged, and
calculate the risk capital reserves at 5% of investment scale for securities
derivatives, equity securities and fixed income securities that have been
hedged.
Securities companies, if engaging in proprietary business in excess of
prescribed ratio, shall calculate the risk capital reserves for the excessive
proprietary business at 100% of the investment cost prior to the completion of
rectification work. ”
III. Item (4) of Article 1 is amended to read: “For engaging in asset
management business, securities companies shall calculate the risk capital
reserves for asset management business at 4%, 3%, 2% and 2% of the sizes
of special-purpose, collective, limit-specific and client-specific asset
management businesses respectively.
Securities companies shall calculate the sizes of collective and limit-specific
asset management businesses in accordance with the higher of the nominal
value of collective plans and the net value of assets under management, and
calculate the sizes of special-purpose and client-specific asset management
businesses according to the principal assets under management.”
IV. Item (6) of Article 1 is amended to read: “Securities companies that have
established branch companies, securities business departments and other
branch offices shall calculate the risk capital reserves at 20 million yuan and 3
million yuan for each branch company and each securities business
department respectively.”
V. One paragraph is added to Article 2 as its third paragraph: “Companies
rated as Class A for three consecutive years shall calculate the risk capital
reserves at 0.4 times of the benchmark calculation standards prescribed in
Item (1) to Item (5) of Article 1.”
VI. Table for Calculating Risk Capital Reserves of Securities Companies is to
be adjusted accordingly based on the above amendments.
This Decision enters into force as of the date of promulgation.
The Provisions on the Standards for Calculating Risk Capital Reserves of
Securities Companies is to be amended accordingly in accordance with this
Decision and re-promulgated.