Introduction of Securities Registration and Depository Model in China June 2009 Contents Current Registration and Depository Models in China Registration Model Depository Model Structure of Accounts Summary Historical Background
Advantages and Disadvantages
Improvement of the Account Structure
The holder book
Some explanatory notes about registration model China——Registration Model
Direct holding (major)
Indirect holding (minor)
Broker’s self-supporting account
Some explanatory notes about depository model China——Depository Model
Ⅰ Investors’ accounts are in custody with brokers .
Ⅱ Brokers’ self-supporting accounts and brokerage accounts are deposited with SD&C .
Types of accounts
Ⅰ Shanghai accounts
Ⅱ Shenzhen accounts
Ⅰ Renminbi ordinary accounts (A share accounts)
Ⅱ Renminbi special accounts (B share accounts)
Ⅲ Security investment fund accounts (fund accounts)
Ⅳ Other accounts: broker bond accounts etc.
—— China——Depository ModelClassified by holders:
ⅰ A share accounts:
Ordinary institutional accounts
Special institutional accounts
ⅱ B share accounts:
Domestic investor accounts
Foreign investors accounts
Ⅰ Direct-holding accounts
Ⅱ Indirect-holding accounts: such as foreign investors’ B share accounts, QFII accounts.
Open an account China——Depository Model
Qualification of Chinese citizen or Chinese legal person
Some other exclusions by law .( QFII etc.)
(1) By real name
Personal valid identification papers
(2) One account for one person
Ordinary investors: just can open only one account for one purpose at one market
Special legal-person institutions: can open some accounts, such as securities firms, trust company, insurance company, fund company, QFII and so on.
(3) Real-time principle China——Depository Model
Distribute account number and print account card by real-time account-opening system
(4) Agent to open an account
Ordinary investors: at account-opening agents.
Only special legal-person institutions: directly at SD&C
Use an account China——Depository Model
Can be only used at the designated broker.
Custody securities at where you buy them
Can be used at many brokers at the same time.
Boosting the capability of communication and data-processing
Improving the efficiency of depository and clearing system
Clear legal relationship
Safe, transparent, efficient
Reducing cost and improving efficiency
Dis China——Depository Modeladvantages
This leads to some disadvantages: inconvenience in use, occupies more system resources, lowers market efficiency and can’t meet to the needs of innovation businesses in the future.
Thanks! to Improve the Structure