China's securities regulator checks equity pledges - Securities Times

By Kitco News / February 11, 2018 / www.kitco.com / Article Link

BEIJING, Feb 11 (Reuters) - The China Securities Regulatory Commission (CSRC) has started checks on how major shareholders of listed firms are using stock as collateral, part of a broader effort to limit the risks of equity pledges, state-owned Securities Times reported on Sunday.

Local CSRC offices in the provinces of Hubei, Sichuan, Anhui and Henan have undertaken checks, the report said, in order to assess the status of share pledges and what dangers they may cause to listed firms.

The investigation is focused on those listed companies with a higher proportion of pledged shares, the report said, and is seeking details on major shareholders, the form of pledged transactions, counterparties to share pledges, and pledge amounts and rates.

The CSRC is also asking the listed companies to provide details for their plans to prevent a change of company control if pledge shares are sold off.


(Reporting By Matthew Miller; editing by Richard Pullin)

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