 Advantages |
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- "Green Express", streamlined application procedure and fast execution.
- SPDB has a special trading seat in Shanghai Stock Exchange for loans secured with stocks and complete business operation platform.
- SPDB designates specific staff for business operation and keeps high degree of privacy and secrecy of clients;
- SPDB offers satisfactory services no matter you are a local securities company or not.
- SPDB has rich experiences in handling such businesses.
- If your securities company needs funding, you may apply to SPDB according to the following procedures:
Qualification of the Borrower |
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- Sufficient liquidity in assets.
- Its own proprietary businesses conform to the risk control ratio required by China Securities Regulatory Commission.
- The securities company has withdrawn trading risk reserves in full as required China Securities Regulatory Commission.
- The securities company has committed no major law-breaking action during the past year and its senior management and key business operation staff do not have any crime record.
- The company operated normally during the previous year and incurred no losses.
- The securities company didn't embezzle clients' settlement funds.
Stocks that may be used as collateral |
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- A share (common shares).
- Securities investment fund.
Stocks that may be used as collaterals must have good business performance, reasonable size of the tradeable stocks and good liquidity.Following stocks shall not be accepted as collaterals.
- Stocks of a listed company that incurred losses from business operation during the previous year.
- Stocks whose prices fluctuated over 200% (the highest price/ the lowest price) during the previous 6 months.
- Stocks whose tradeable parts are too concentrated.
- Stocks that have been cancelled or suspended by Shanghai Stock Exchange.
- Stocks that are being specially treated by Shanghai Stock Exchange.
- Stocks of a listed company of which the securities company has hold 5% stake or above. However, if a securities company holds over 5% stake of a listed company because it's the sole underwriter, the above limit does not apply.
Tenor, loan rate and pledge rate |
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- The maximum tenor: 6 months with no extension period.
- The loan rate is to be determined by referring to that of commercial loans of the same tenor regulated by PBOC and may be adjusted up to 30% upward or 10% downward.
- Pledge rate is agreed by the lender and borrower according to the pledged stock quality and financial status of the borrower with max 60% which is regulated by PBOC.
- Calculation method of the pledge rate: Pledge rate= loan principal / market value of the pledged stock Market value of the pledged stock = amount of pledged stock X average closing price of the previous 7 trading days
Documents Required |
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Loan application shall be submitted to SPDB Financial Institutions Department and following documents are required: - Legal person business license, legal person ID card, legal person certificate.
- Financial business license, proprietary trading license, certificate for comprehensive securities companies.
- Three years' audited financial reports and previous month's Balance Sheet, Profit and Loss Statement and Cash Flow Statement.
- Basic information of the stocks to be used as collateral.
Loan Procedures |
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- The securities company submits the loan application and documents as required.
- SPDB reviews the documents and application and confirms the loan, the amount and tenor.
- SPDB grants the loan.
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