China News Service, Beijing, February 5 (Reporter Chen Kangliang) Regarding the overall stock pledge risk in the A-share market, a spokesman for the China Securities Regulatory Commission stated on the 5th that as of February 2, the Shanghai Stock Exchange and the Shenzhen Stock Exchange The proportion of stock pledged market value in total market value dropped to 3.38%.
The spokesperson said that since 2018, the China Securities Regulatory Commission, together with relevant departments, has continued to promote the resolution of stock pledge risks, and the overall risk of stock pledges in the Shanghai and Shenzhen stock exchanges has dropped significantly. As of February 2, the proportion of stock pledged market value in the two cities' total market value has dropped from 10.51% at the peak in 2018 to 3.38%, and the balance of pledged financing has dropped from 2.69 trillion yuan (RMB, the same below) to 1.59 trillion yuan. The number of listed companies with a pledge ratio of the largest shareholder exceeding 80% dropped from 702 to 227. Judging from the situation so far this year, the scale of pledges has declined compared with the end of last year.
The spokesman said that from the beginning of this year to February 2, the Shanghai and Shenzhen stock markets disclosed a total of 106 supplementary pledge announcements by major shareholders, which was indeed an increase compared with the same period last year. However, supplementary pledge is an agreement between banks, securities firms and other financial institutions (pledgees) and shareholders (pledgors) to ensure financing security when the pledge performance guarantee ratio is lower than the warning line (not the liquidation line). Protective measures that will not result in forced liquidation. At the same time, the China Securities Regulatory Commission has guided securities firms and other institutions to increase the flexibility of liquidation lines to promote the smooth operation of the market. According to data from the Shanghai and Shenzhen stock markets, the total amount of forced liquidation due to stock pledge defaults this year is 27.4032 million yuan, accounting for a small proportion of the market's daily turnover.
The spokesperson emphasized that the China Securities Regulatory Commission will closely monitor and take effective measures to prevent stock pledge risks. (over)