BEIJING, Jan. 29 (Xinhua) -- China Securities Regulatory Commission (CSRC), the country's securities regulator, announced on January 28 to suspend lock-up shares lending from Monday, reported Xinhua-run China Securities Journal on Monday.
CSRC made the decision on further optimizing securities lending rules to create a fairer market order and tightened lock-up shares lending supervision to crack down illegal activities such as detour-based shareholdings reduction and related cash-out.
CSRC also announced another adjustment effective from March 18, under which shares borrowed by securities finance firms from institutional investors to lend out to brokerages for securities margin trading will not be immediately available but be available for them until one day later.
Previously in October 2023, CSRC put limits on lending of shares that listed companies' senior executives and core employees get in strategic placements and restricted the ways and ratios of share lending by other strategic investors of listed firms at the early period of their public listing. Since implementation of these measures, balances of securities lending by strategic investors of listed companies declined by nearly 40 percent.
In the next step, CSRC will continue to strengthen supervision and further highlight the fairness of rules to maintain market order and better protect the legitimate rights and interests of investors of all sizes. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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