Administrative Provisions on Subordinated Debts of Securities Companies (Revised in 2017)
Administrative Provisions on Subordinated Debts of Securities Companies (Revised in 2017)
Administrative Provisions on Subordinated Debts of Securities Companies (Revised in 2017)
Announcement of the China Securities Regulatory Commission [2017] No.16
December 7, 2017
(Promulgated according to the Announcement of the China Securities Regulatory Commission [2012] No.51 on December 27, 2012, and revised according to the Decision of the China Securities Regulatory Commission on Revising and Abolishing Thirteen Normative Documents Including the Administrative Provisions on Subordinated Debts of Securities Companies on December 7, 2017)
Article 1 For the purposes of regulating the administration of the subordinated debts of securities companies and maintaining the lawful rights and benefits of investors, these Provisions are hereby enacted in accordance with the Securities Law, the Regulations on Supervision and Administration of Securities Companies and other laws and administrative regulations.
Article 2 In these Provisions, the "subordinated debts of the securities companies" refer to the subordinated debts that are borrowed by securities companies from shareholders or institutional investors and that have a repayment priority order lower than that of common debts (hereafter referred to as "subordinated debts") and the negotiable securities that are issued by securities companies to institutional investors and that have a repayment priority order lower than that of common debts (hereafter referred to as "subordinated bonds"). The subordinated debts and subordinated bonds shall be in the same repayment order of securities companies.
The "institutional investors" mentioned in the previous Paragraph refer to: (1) Financial institutions which are established with approval by financial supervisory authorities, including but not limited to commercial banks, securities companies, fund management companies, trust companies and insurance companies; (2) Wealth management products issued by the above-mentioned financial institutions to investors, including but not limited to banking wealth management products, trust products, investment-purpose insurance products, fund products, and securities companies' asset management products; (3) Enterprise legal persons with a registered capital of not less than RMB10 million; (4) Partnership with the capital contributions subscribed by partners of not less than RMB50 million and the paid-in capital contributions of not less than RMB10 million; and (5) Other investors as recognized by the China Securities Regulatory Commission.
The subordinated bonds of securities companies shall only be issued in a non-public manner, and advertisements, public induction or disguised public means shall not be employed. The number of the institutional investors of the bonds of each stage shall not exceed 200.
Article 3 Subordinated debts include long-term subordinated debts and short-term subordinated debts.
The subordinated debts borrowed or issued by securities companies with a period of more than one year (exclusive) shall be defined as long-term subordinated debts.
Subordinated debts with a period of more than 3 months (inclusive) but less than one year (inclusive) borrowed or issued by securities companies to meet the normal needs of liquid capital shall be defined as short-term subordinated debts.
Article 4 Long-term subordinated debts may be calculated as net capital at a certain percentage.
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Announcement of the China Securities Regulatory Commission [2017] No.16
December 7, 2017
(Promulgated according to the Announcement of the China Securities Regulatory Commission [2012] No.51 on December 27, 2012, and revised according to the Decision of the China Securities Regulatory Commission on Revising and Abolishing Thirteen Normative Documents Including the Administrative Provisions on Subordinated Debts of Securities Companies on December 7, 2017)
Article 1 For the purposes of regulating the administration of the subordinated debts of securities companies and maintaining the lawful rights and benefits of investors, these Provisions are hereby enacted in accordance with the Securities Law, the Regulations on Supervision and Administration of Securities Companies and other laws and administrative regulations.
Article 2 In these Provisions, the "subordinated debts of the securities companies" refer to the subordinated debts that are borrowed by securities companies from shareholders or institutional investors and that have a repayment priority order lower than that of common debts (hereafter referred to as "subordinated debts") and the negotiable securities that are issued by securities companies to institutional investors and that have a repayment priority order lower than that of common debts (hereafter referred to as "subordinated bonds"). The subordinated debts and subordinated bonds shall be in the same repayment order of securities companies.
The "institutional investors" mentioned in the previous Paragraph refer to: (1) Financial institutions which are established with approval by financial supervisory authorities, including but not limited to commercial banks, securities companies, fund management companies, trust companies and insurance companies; (2) Wealth management products issued by the above-mentioned financial institutions to investors, including but not limited to banking wealth management products, trust products, investment-purpose insurance products, fund products, and securities companies' asset management products; (3) Enterprise legal persons with a registered capital of not less than RMB10 million; (4) Partnership with the capital contributions subscribed by partners of not less than RMB50 million and the paid-in capital contributions of not less than RMB10 million; and (5) Other investors as recognized by the China Securities Regulatory Commission.
The subordinated bonds of securities companies shall only be issued in a non-public manner, and advertisements, public induction or disguised public means shall not be employed. The number of the institutional investors of the bonds of each stage shall not exceed 200.
Article 3 Subordinated debts include long-term subordinated debts and short-term subordinated debts.
The subordinated debts borrowed or issued by securities companies with a period of more than one year (exclusive) shall be defined as long-term subordinated debts.
Subordinated debts with a period of more than 3 months (inclusive) but less than one year (inclusive) borrowed or issued by securities companies to meet the normal needs of liquid capital shall be defined as short-term subordinated debts.
Article 4 Long-term subordinated debts may be calculated as net capital at a certain percentage.
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