BEIJING, March 8 (Xinhua) -- Chinese central bank, the People's Bank of China (PBOC), announced on March 5 to invite public opinions on its revised commercial paper (CP) management rules for securities firms, reported Xinhua Finance, a Xinhua-run financial information platform.
The amended rules require securities brokers to apply balance management over their CPs and cap their balances of unpaid CPs and other short-term financing vehicles under 60 percent of their net assets.
PBOC said the term of CPs shall not exceed one year and securities firms can determine the term of each batch of their CPs issues.
Securities companies are, as the rules tell, prohibited to pump the proceeds from their CP issues into fixed-asset investment and construction of business units, stocks investment in secondary stock market, financing for securities transactions for clients, and long-term equity investment.
By cancelling record filing before CP issuance and strengthening in-process and after issuance management, the revised rules aim at guiding securities brokers to enhance liquidity management, better protect investors and foster steady and healthy development of money market in China. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
A single purchase
