Article 1 The Measures is formulated in accordance with Article 111 and Article 112 of the “Securities Law of the People’s Republic of China” in order to ensure a safe operation of the securities trading system and to properly supervise and use the stock exchange risk fund.
Article 2 The stock exchange risk fund (hereinafter referred to as the Fund) termed in this Measures refers to a special fund is intended for the making up for the heavy economic losses of the stock exchange and the prevention of significant risk accidents related to the business activities of the stock exchange so as to ensure an normal operation of stock exchange activities.
Article 3 Source of the Fund
I Drawn on the basis of 20% of the transaction handling charges collected by the stock exchange and recorded independently as risk fund;
II Drawn on the basis of 10% of the annual seat fee collected by the stock exchange and recorded independently as risk fund;
III Drawn, in one lump sum, on the basis of 10% of the membership fee collected by the stock exchange and recorded independently as risk fund;
IV Drawn, in one lump sum, on the basis of 15% of the book balance of the frozen subscription capital spread for IPO;
V Drawn from the penalty and default interest income on the members who have violated regulations.
Article 4 When the net asset of the Fund reaches or exceeds RMB1 billion at the end of each fiscal year, no fund shall be drawn for the following year as specified in Subparagraphs I and II of Article 3 of this Measures.
Article 5 When the net asset of the Fund is less than RMB1 billion at the end of each fiscal year, fund shall continue to be drawn for the following year according to Subparagraphs I and II of Article 3 of this Measures.
Article 6 The China Securities Regulatory Commission (CSRC) will work together with the Ministry of Finance (MOF) according to market risk in the adjustment of the scale of the Fund, the method of fund drawing, the proportion of fund to be drawn and the mode of payment of fund.
Article 7 The Fund shall be supervised by the Stock Exchange Council. The Council shall designate institutions to carry out day-to-day management and application of the Fund.
Article 8 The Fund should be deposited in a special account in the state-owned commercial bank and the deposit interest should be transferred to special fund account.
Article 9 The assets of the Fund should be recorded separately from those of the stock exchange. The ledger should be established under the Fund to record the application of the assets, interest income and the principal and interest of the corresponding assets of the Fund formed according to Article 3 in the Measures.
Article 10 The minimum payment limit of the Fund is RMB20 million. The stock exchange, which is using the Fund, must apply to the CSRC as well as the MOF for approval.
Article 11 The funds drawn according to Subparagraph IV of Article 3 of the Measures should not be used until all the other funds under this Article are paid up.
Article 12 The stock exchange should establish and perfect business regulations, internal management system and membership supervision system according to the relevant laws and regulations in order to prevent risk accident to the maximum.
Article 13 In case the Fund is used, the stock exchange should strive to have it recovered from the relevant responsible party and the recovered amount should be transferred into the Fund; meanwhile, the business rules, internal management system and membership supervision system should be amended and perfected in time.
Article 14 When the Fund is changed or cleared upon the approval by the CSRC, the proportion and amount in the remaining assets of the Funs to be handed in to the State and returned to the relevant contributors should be decided by the CSRC and the Ministry of Finance.
Article 15 The financial accounting and management measures of the Fund should be formulated by the MOF.
Article 16 The right to interpret this Measures belongs to the CSRC.
Article 17 The Measures shall be implemented upon the date of promulgation.