The China Securities Regulatory Commission reported on February 6 that the China Securities Regulatory Commission proposed three measures to further strengthen the supervision of securities lending business, including suspending the scale of new refinancing securities, strictly prohibiting the provision of securities lending to investors who use securities lending to implement intraday rotation transactions (disguised T+0 transactions), and cracking down on illegal activities such as using securities lending transactions to carry out improper arbitrage in accordance with the law.
In the afternoon of the same day, E Fund**, Huaxia**, Huatai Berry**, GF**, Fuguo**, Nanfang**, Harvest**, Cathay**, Huabao**, Tianhong**, China Merchants ** and many other leading public offering institutions issued announcements one after anotherIt will strictly implement the relevant requirements of the China Securities Regulatory Commission on securities lending business, suspend new refinancing** lending, and prudently and steadily promote the gradual completion of the existing refinancing** lending scale to ensure the smooth operation of relevant businesses.
The head public offering is suspended
New refinancing** lending
On February 6, the spokesperson of the China Securities Regulatory Commission (CSRC) responded to the further strengthening of the regulatory arrangements for securities lending business when answering reporters' questions on the relevant situation of the "two financing" securities lending business. The first is to suspend the scale of new refinancing bonds, with the balance of existing refinancing securities as the upper limit, and suspend the scale of new refinancing securities of ** companies in accordance with the law, and gradually close the stock; The second is to require the company to strengthen the management of customer trading behavior, and strictly prohibit the provision of securities lending to investors who use securities lending to implement intraday rotation trading (disguised T+0 trading); Third, the CSRC will continue to strengthen supervision and law enforcement, and the China Securities Regulatory Commission will crack down on illegal activities such as improper arbitrage through the use of securities lending transactions in accordance with the law to ensure the smooth operation of securities lending and borrowing business.
On the afternoon of February 6, a number of leading public offering institutions such as E Fund**, Huaxia**, Huatai Berry**, GF**, Fuguo**, Nanfang**, Harvest**, Cathay**, Huabao**, Tianhong**, and China Merchants issued announcements stating that they would strictly implement the relevant requirements of the China Securities Regulatory Commission on securities lending business, suspend new refinancing** lending, and prudently and steadily promote the gradual completion of the scale of existing refinancing** loans to ensure the smooth operation of relevant businesses.
E Fund** official website**Refinancing lending scaleRelatively smallThe Guidelines for Public Offering, Investment, Participation in Refinancing, and Lending Business (for Trial Implementation) put forward clear requirements for open-ended indexes and related links to participate in lending business. First, the lending of ** assets shall not exceed 30% of the ** net asset value. Second, a single ETF lending business shall not exceed 30% of the total amount held; A single entity participating in the lending business of other open-end indexes and ETF connections shall not exceed 50% of the total amount held. Third, the average daily ** net asset value in the last 6 months shall not be less than 200 million yuan. Fourth, the average remaining term of ** lending shall not exceed 30 days, and the average remaining term shall be calculated according to the weighted average of market value. In addition, the "Guidelines for Participating in Margin Financing and Securities Lending and Refinancing" issued by AMAC clearly requires that the property and income obtained by the manager from participating in the refinancing transaction by using the property shall be classified as the property. Wind data shows that as of the end of 2023, a total of 335 companies have participated in the refinancing lending business in the public offering market, with a cumulative market value of 7981.2 billion yuan, and the total circulating market value of A-shares is about 7762 trillion yuan, accounting for only 010%。Among them, a total of 264 ETFs participated, with a total market value of about 730 refinancing and lending business2.2 billion yuan. In addition, the market value of the refinancing business of the public offering is less than 30% of the net asset value, with an average of about 7%. Specifically, the total market value of the refinancing** lending business of Nanfang**, Huaxia**, and E Fund** exceeded 9 billion yuan, and Cathay ** and GF** were also more than 6 billion yuan. Among them, the market value of the refinancing** lending business of large-scale broad-based ETFs such as CSI 500 ETF, ChinaAMC SSE Science and Technology Innovation Board 50 ETF, E Fund SSE Science and Technology Innovation Board 50 ETF, and ChinaAMC CSI 300 ETF exceeds 2 billion yuan, but the proportion is relatively low compared to the net asset value. Reviewer: Hou Zhihong Editor: Li Ruoyu Jiao Yuanyuan Signed: Peng Yong