Recently, the China Securities Depository and Clearing Corporation Limited ("CSDC"), together with the Shanghai Stock Exchange ("SSE") and the Shenzhen Stock Exchange ("SZSE"), have issued the Guidelines on the Submission of Data on Financing Bodies in Pledge-style Bond Repurchase (the "Guidelines") and the Statement for Submitting Data on Financing Bodies in Pledge-style Bond Repurchase, both of which shall be in force from November 17, 2017.
The Guidelines clearly specify that the financing body in such repo is required to submit its subject information and relevant business data regularly, pursuant to requirements set out in these Guidelines, to the CSDC and the related stock exchange. Where the financing body in the repo plays as the clearing participant, the said data shall be reported directly by it to the CSDC and the related stock exchange; the party that is not the clearing participant shall authorize and entrust its clearing participant to submit data on its behalf. Additionally, the Guidelines require a monthly submission of the above-said data, stating that the clearing participant and the custodian shall report the data for the preceding month within the first seven working days of the current month. Furthermore, the CSDC and stock exchanges may adjust the content, frequency, date and statistical period in respect of the data submitted by all or some clearing participants and custodians, depending on the overall risk status of repo transactions through financing. Where a clearing participant or a custodian itself or its client is exposed to relatively high risks in respect of the financing-based repo business, it may be required to submit data from time to time.