The China Securities Regulatory Commission has revised and issued the "Provisions on the Calculation Standards of Risk Control Indicators for Securities Companies", which will officially take effect on January 1st next year.

The China Securities Regulatory Commission revised and released the "Risk Control Indicator Calculation Standard Regulations for Securities Companies." Compared with the current risk control indicator system, the "Risk Control Indicator Regulations" optimize the calculation standards for risk control indicators of securities companies in stock investment, market making, and other businesses, further guiding securities companies to fully leverage their functions in long-term value investment, financing for the real economy, and wealth management services for residents. According to the risk management level of securities companies, the regulations optimize the classification adjustment coefficients of risk control indicators to support high-quality securities companies in compliant and stable operations to moderately improve capital efficiency, better providing comprehensive financial services for the real economy. The "Risk Control Indicator Regulations" will officially come into effect on January 1, 2025. In January 2020, the China Securities Regulatory Commission revised and issued the "Risk Control Indicator Regulations." From the implementation perspective, the risk resistance capacity of the securities industry has steadily increased, with the four core risk control indicators maintaining a level of 1.5-2.5 times the regulatory standard in the long term. The risk control indicator system has played an important role in improving the risk management level of securities companies and enhancing the industry's ability to resist risks. Based on a comprehensive summary of practical experience and in response to new situations and requirements faced by the securities industry, the China Securities Regulatory Commission further played a role in guiding risk control indicators, revising the "Risk Control Indicator Regulations" and soliciting public opinions from November 3 to December 3, 2023. Feedback indicates that the public widely accepts the "Risk Control Indicator Regulations" and provides valuable opinions and suggestions based on practice. The China Securities Regulatory Commission has thoroughly studied and absorbed most of the suggestions, with remaining opinions mainly related to the calculation standards for innovative businesses such as off-exchange derivatives. Compared with the current risk control indicator system, the "Risk Control Indicator Regulations" mainly adjust and enhance the following aspects: firstly, optimizing the calculation standards for risk control indicators of securities companies in stock investment, market making, and other businesses to further guide securities companies to fully leverage their functions in long-term value investment, financing for the real economy, and wealth management services for residents. Secondly, according to the risk management level of securities companies, optimizing the classification adjustment coefficients of risk control indicators to support compliant and stable high-quality securities companies to moderately improve capital efficiency and better provide comprehensive financial services for the real economy. Thirdly, including all business activities of securities companies in the range of risk control indicators, clarifying the calculation standards for new business risks such as securities companies participating in public REITs, enhancing the completeness and scientific nature of the risk control indicator system, and solidifying the risk control foundation. Fourthly, setting stricter risk control indicator calculation standards for innovative businesses and high-risk activities to strengthen regulatory efforts and increase regulatory effectiveness. In addition, to ensure a smooth and orderly transition, the "Risk Control Indicator Regulations" have set a certain transition period and will officially come into effect on January 1, 2025.