Brokerage pressure test "improve quality": China Securities Regulatory Commission clarifies five "further" steps.

According to industry sources, the China Securities Association recently issued a notice to various securities firms, providing further guidance on continuing to do pressure testing work. The China Securities Association has put forward five deepening work requirements for securities firms focusing on improving the normal testing mechanism, strengthening the construction of pressure testing transmission mechanism, and enhancing risk management capabilities. First, further strengthen the application of pressure testing management. Addressing the phenomenon of some institutions focusing more on form than application, the China Securities Association emphasizes that securities firms should enhance their sense of responsibility, further strengthen the top-level design and overall guidance of pressure testing, enrich the application scenarios of pressure testing management, fully utilize the forward-looking risk warning function of pressure testing, dynamically reflect changes in risks in the company's business development, and truly achieve the transformation from "compliance benchmarking" to "management empowerment". Second, further optimize the over-the-counter derivative pressure testing scheme. Currently, over-the-counter derivatives have complex contract structures and various risk scenarios, but related pressure testing still lacks in scenario setting and content coverage. The China Securities Association requires securities firms to continuously optimize over-the-counter derivative pressure testing schemes, enrich parameter dimensions, improve test accuracy, especially for key businesses such as snowballs and long-short income swaps, gradually establish and improve special testing schemes, and include market impact assessments of hedging trades in the schemes. Third, further improve the reputation risk pressure testing transmission mechanism. The results of the 2025 pressure testing showed that some securities firms only simply equated reputation risk loss with risk disposal costs in reputation risk pressure testing, without fully evaluating risk transmission effects. Some securities firm subsidiaries did not include reputation risks in testing; some securities firms equated reputation risks with compliance risks and did not conduct separate reputation risk pressure testing. The China Securities Association points out that the industry's pressure testing on reputation risks is still in the exploratory stage and needs further strengthening. Securities firms should carefully study the risk characteristics, transmission paths, and impact results of reputation events in testing to effectively respond to related shocks. Fourth, further strengthen the management of subsidiary pressure testing work. In accordance with the latest requirements of the "Comprehensive Risk Management Standards for Securities Companies" and the "Consolidation Management Guidelines for Securities Companies," securities firms should improve panoramic, penetrating management systems, coordinate the pressure testing work of subsidiary companies, gradually improve the automation level of testing, strengthen the integrated control of risks in subsidiary companies, and ensure the consistency and effectiveness of comprehensive risk management. Fifth, further enhance the effectiveness and accuracy of pressure testing. Securities firms should carefully complete pressure testing work as required by the China Securities Association, regularly inspect and evaluate the work mechanism and execution results, and continuously optimize and improve them. The China Securities Association will timely evaluate and inspect the implementation of pressure testing work by securities firms.