The China Securities Association formulated and issued the “Administrative Measures on Issuance of Income Certificates by Securities Companies”, which took effect from the date of promulgation. Securities companies issue income certificates and implement hierarchical balance management. Since the launch of the pilot in 2014, securities companies' income certificate business has developed steadily. By the end of August 2024, the total market had revenue certificates of 381.1 billion yuan, reaching 17,600. As of the end of August 2024, the number of institutional investors in stock income certificates was 8064, accounting for 82.51% of their holdings, mainly commercial banks, private equity products, etc. Some industry insiders pointed out that after the “Administrative Measures” were issued and implemented, there was very little impact on securities companies as a whole. On the one hand, the Association already requested in 2019 that floating income certificates that may cause loss of investor principal due to risks related to the linked subject matter be managed in accordance with OTC option investor appropriateness standards, etc., and such income certificates will return to the derivatives business in the future and are more in line with the essence of the business. On the other hand, income certificates account for less than 5% of securities companies' liabilities. Currently, securities companies' financing channels are relatively smooth and financing methods are diverse. After the stock income certificate expires, securities companies can supplement it through other financing channels such as corporate bonds, short-term interbank financing notes, and interbank loans.

Zhitongcaijing · 10/25 14:41
The China Securities Association formulated and issued the “Administrative Measures on Issuance of Income Certificates by Securities Companies”, which took effect from the date of promulgation. Securities companies issue income certificates and implement hierarchical balance management. Since the launch of the pilot in 2014, securities companies' income certificate business has developed steadily. By the end of August 2024, the total market had revenue certificates of 381.1 billion yuan, reaching 17,600. As of the end of August 2024, the number of institutional investors in stock income certificates was 8064, accounting for 82.51% of their holdings, mainly commercial banks, private equity products, etc. Some industry insiders pointed out that after the “Administrative Measures” were issued and implemented, there was very little impact on securities companies as a whole. On the one hand, the Association already requested in 2019 that floating income certificates that may cause loss of investor principal due to risks related to the linked subject matter be managed in accordance with OTC option investor appropriateness standards, etc., and such income certificates will return to the derivatives business in the future and are more in line with the essence of the business. On the other hand, income certificates account for less than 5% of securities companies' liabilities. Currently, securities companies' financing channels are relatively smooth and financing methods are diverse. After the stock income certificate expires, securities companies can supplement it through other financing channels such as corporate bonds, short-term interbank financing notes, and interbank loans.