In order to effecitvely connect lenders and borrowers, promote the development of securities pledge financing businesses, and satisfy the development demand of real economy, China Securities Depository and Clearing Co., Ltd. (CSDC) recently launched an online platform to facilitate information exchanges between securities pledgers and pledgees.
      With development of the capital market in China, the pledge of securities has become an important financing means for securities holders to make effective use of their securities assets and meet their capital turnover demand. A price inquiry system has been introduced on the platform, where borrowers will disclose information about securities to be pledged and lenders will reveal amounts and interest rates of funds available for lending. By referring to the reported information and qualification information and negotiating with interested parties in private, both lenders and borrowers are more likely to secure ideal transactions with higher efficiency and effectiveness.
      The securities to be pledged on the platform cover several capital markets in China, including A shares, B shares, bonds, funds, and ETFs listed in Shanghai Stock Exchange, Shenzhen Stock Exchange, and the National SME Share Transfer System, as well as open-end funds and shares of asset management plans of securities companies registered with CSDC. Holders of such securities can publish, free of charge, information on the securities to be pledged on the platform.
      Up to now, the platform has attracted wide attention from various types of financial institutions, including commercial banks, securities companies, trust companies, pawnbrokers, micro-financing companies, and financing guarantee companies. Dozens of them have registered as pledgees and posted fund lending information on the platform. Therefore, this platform enables pledgers to raise funds from diverse sources at a lower cost resulting from competition.
      To ensure truthfulness of the information published on the platform, CSDC carries out ongoing verification on such information, especially on the truthfulness and validity of the securities to be pledged. On the other hand, user privacy is protected on the platform. The platform offers information publishing services, which keeps customer’s identity in confidential, and shields sensitive information as users wish.
      The function of the straight-through processing of pledge registration on the platform is under development. In addition to information publishing, browsing, and online communication functions, the users will soon have access to the straight-through processing of pledge registration application, business handling, and collateral disposal, which, as a whole, results in securer, more efficient, and more convenient pledge registration service. CSDC will also develop derivative functions on the platform, including mark-to-market and fund custody and transfer, so as to provide users with all-around and professional pledge registration service.