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I. Definition
ICBC provides Stock Pledged Loan for eligible securities companies. The borrower pledges the proprietary securities. The pledged properties can be circulated A-Stock, securities investment fund certificates, and convertible bond of the listed companies as per regulations.
II. Target Client
The securities companies eligible for proprietary securities services set up as per laws and as per approval by China Securities Supervision Commission may apply for Stock Pledged Loans at the local branches. The borrower shall qualify the following conditions:
(I) Adequate liquidity in assets and ability of principal and interest repayment;
(II) The proprietary services are compliant with the risk control ratios stipulated by China Securities Regulatory Commission;
(III) Have appropriated sufficient transaction risk reserve fund as per regulations of China Securities Regulatory Commission;
(IV) Have regularly disclosed balance sheet, net assets computation schedule, income statement, and profit distribution and other information pursuant to rules of China Securities Regulatory Commission;;
(V) No significant violations or significant risk events accredited by China Securities Regulatory Commission during the past year and the current senior management and the key officers have clean records of key misconducts accredited by China Securities Regulatory Commission;
(VI) Have achieved independent custody of customers' transaction settlement fund as per accreditation by China Securities Regulatory Commission, and have not embezzled customers' transaction settlement fund;
(VII) Prudent operation and good cooperation records with ICBC;
(VIII) Other conditions required by the lender.
III. Features and Strengths
(I) The securities companies may obtain steady low-cost fund through such service;
(II) The pledged properties are deposited at the special seat of ICBC. The borrower can arrange sales, share allotment, and share purchase through ICBC Stock Pledged Loan management information system. The borrower can also sell the pledged properties or implement share allotment purchase and new share purchase through ICBC's remote entrustment system developed especially for the borrowers.
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