China News Service, February 5. According to the website of the China Securities Regulatory Commission, the spokesperson of the China Securities Regulatory Commission responded to reporters’ questions on the situation related to stock pledges on the 5th and stated that it will closely monitor and take effective measures to prevent stock pledge risks.
Reporter asked: Recently, announcements of supplementary pledges by major shareholders of listed companies have increased. What is the overall pledge risk in the market?
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 to 1.59 trillion yuan. The largest shareholder of listed companies The number of companies with a pledge ratio 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 spokesperson pointed out that from the beginning of this year to February 2, the Shanghai and Shenzhen stock markets disclosed a total of 106 announcements of supplementary pledges 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, we guide securities firms and other institutions to increase the flexibility of liquidation lines to promote the smooth operation of the market. Judging from data from the Shanghai and Shenzhen stock markets, the total amount of forced liquidation of stock pledge defaults this year is 27.4032 million yuan, accounting for a small proportion of the market's daily turnover.
The spokesperson said that the China Securities Regulatory Commission will closely monitor and take effective measures to prevent stock pledge risks.