Home » Spokesperson of the China Securities Regulatory Commission answers reporters’ questions on stock pledges

Spokesperson of the China Securities Regulatory Commission answers reporters’ questions on stock pledges

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The China Securities Regulatory Commission (CSRC) has responded to questions regarding the recent increase in announcements of supplementary pledges by major shareholders of listed companies. In a statement on the CSRC website, the spokesperson addressed concerns about the overall pledge risk in the market.

The spokesperson highlighted that since 2018, the CSRC and relevant departments have been actively working to resolve stock pledge risks. As a result, the overall risk of stock pledges in the Shanghai and Shenzhen stock exchanges has significantly decreased. The proportion of stock pledged market value in the two cities’ total market value has dropped from 10.51% in 2018 to 3.38%. Additionally, the balance of pledged financing has decreased from 2.69 trillion yuan to 1.59 trillion yuan, indicating a positive trend in risk reduction.

The spokesperson also noted that the number of companies with a pledge ratio exceeding 80% has dropped from 702 to 227. Despite an increase in supplementary pledge announcements by major shareholders, the CSRC clarified that supplementary pledges serve as protective measures to ensure financing security and are not indicative of forced liquidation. The total amount of forced liquidation of stock pledge defaults this year accounts for a small proportion of the market’s daily turnover.

The CSRC emphasized their commitment to monitoring closely and implementing effective measures to prevent stock pledge risks in the market.

Securities Times, in a statement, emphasized that the content mentioned in the article is for reference only and does not constitute substantive investment advice. They advised that any operations based on the information should be undertaken at one’s own risk.

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Investors were encouraged to stay informed about stock market trends and policy information by downloading the official APP of “Securities Times” or following their official WeChat account to capitalize on wealth opportunities.

The news article highlighted the CSRC’s efforts to address stock pledge risks and provided guidance for investors while emphasizing the importance of staying informed.

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