On China's new regulations and countermeasures of risk management in Securities Companies

摘要

As of December 1, 2008, the revised “Management Measures of Securities Companies'' Risk Control Indicators” (“Management Measures”) and its counterpart regulations have been put in force with the emphasis on risk capital reserve by China Securities Regulatory Commission (CSRC). In order to meet the stipulations of risk control in “Management Measures”, securities companies should expand the business scale prudently, establish the pressure test mechanism and upgrade the rank in classification.