Decision on Amending the Provisions on the Standards for Calculating Risk
Capital Reserves of Securities Companies
It is decided that the Provisions on the Standards for Calculating Risk Capital Reserves of
Securities Companies (Announcement No. 28 [2008] of the China Securities Regulatory
Commission) shall be amended as follows:
I. Item (2) of Article 1 is amended to read: “Securities companies which trade securities for
their own accounts shall calculate the risk capital reserves for unhedged securities derivatives,
equity securities, and fixed income securities at 20%, 15% and 8% of the total investment
respectively and calculate the risk capital reserves for hedged securities derivatives, equity
securities and fixed income securities at 5% of the total investment.
The investment scale of stock index futures shall be calculated according to 15% of the total value
of the stock index futures contracts, and the investment scale of interest rate swap shall be
calculated according to 3% of the total value of the nominal principal of interest rate swap
contracts.
Securities companies that trade securities for their own accounts beyond the prescribed proportion
shall, before the completion of rectification, calculate the risk capital reserve for the excess at
100% of the investment cost.”
II. Item (4) of Article 1 is amended to read: “Securities companies which provide securities
asset management services shall calculate the risk capital reserves for asset management at 2%,
2%, 1% and 1% of the sizes of special-purpose, collective, limit-specific, and client-specific asset
management respectively.
Securities companies shall calculate the sizes of the collective and limit-specific asset
management according to the higher of the nominal value of collective plans and the net value of
assets under management and calculate the sizes of the special-purpose and client-specific asset
management business according to the principal under management.”
III. Item (5) of Article 1 is amended to read: “Securities companies which provide margin
trading and short selling services shall calculate the risk capital reserves for margin trading and
short selling respectively at 5% of the sizes of the funds or at 10% of the sizes of securities
borrowed by clients.”
IV. Paragraphs (2) and (3) of Article 2 are amended to read: “Companies of Classes A, B, C
and D shall calculate the relevant risk capital reserves at 0.3, 0.4, 1 and 2 times the benchmark
calculation standard as prescribed in subparagraphs 1 through 5 of paragraph I.
Companies which have been in Class A for three consecutive years shall calculate the relevant risk
capital reserves at 0.2 times the benchmark calculation standard as prescribed in subparagraphs 1
through 5 of paragraph I.”
V. The Annex Calculation Sheet of the Risk Capital Reserves of Securities Companies shall
be adjusted accordingly based on the above amendments.
This Decision shall come into force as of the date of issuance.
The Provisions on the Standards for Calculating Risk Capital Reserves of Securities Companies
shall be amended accordingly in accordance with this Decision and re-issued.