This photo taken on Feb. 17, 2023 shows a view of the Beijing Stock Exchange in Beijing, capital of China. (Xinhua/Wang Quanchao)
BEIJING, Aug. 1 (Xinhua) -- China Securities Regulatory Commission (CSRC) announced on July 28 to solicit opinions on its newly-drafted special rules on stock market making business of securities firms on Beijing Stock Exchange (BSE), reported Xinhua Finance.
BSE said drafting of the special rules was based on characteristics and development demand of BSE as introduction of the market making mechanism in February this year played an active role in improving the liquidity and trading quality of related stocks on BSE.
Containing eight articles, the special rules mainly provide contents on access requirements for stock market making business on BSE, arrangement on rules alignment and regulatory supervision.
For securities companies applying for stock market maker qualification on BSE, the special rules took reference from the comparable requirements for market makers on sci-tech innovation board or STAR Market and adjusted appropriately capital strength and classified rating requirements.
For instance, net capital required for the BSE stock market maker applicants is adjusted down from 10 billion yuan to five billion yuan and rating requirements are also loosened from A-level of A-class or higher rating for three consecutive years to A-level of A-class or higher rating in one of the past three years and BB-level of B-class or higher rating in the past year.
Apart from these, new gauges suitable for BSE are added to requirements for BSE stock market maker applicants, the top 20 ranking in terms of the number of recommended listed companies on BSE or in the past year, the top 20 ranking by turnover of market making on the National Equities Exchange and Quotations (NEEQ).
To align with market making provisions on STAR Market, the special rules tell that except for the access requirements, other provisions concerning securities companies' procedures of access, obligation fulfillment, source of securities for market making and risk management, and monitoring of their abnormal trading shall be implemented pursuant to the STAR Market market making rules.
For securities brokers which have already obtained qualifications for market making business of listed securities under the STAR Market market making rules, they are allowed to carry out securities market making transactions on BSE in accordance with related rules.
Previously in March 2022, China's two major bourses released board-transfer regulations to allow BSE-listed and selected tier of NEEQ-listed companies to list on the STAR Market of Shanghai Stock Exchange and ChiNext Market of Shenzhen Stock Exchange. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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