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CSRC Revises Broker Risk Control Indicators to Support Moderate Improvement in Capital Efficiency
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The China Securities Regulatory Commission (CSRC) announced revisions and the release of the "Standards for Calculating Risk Control Indicators for Securities Companies", which will officially take effect in 2025. The revisions aim to further enhance the risk management system of securities companies and improve their risk prevention capabilities.

The new indicators optimize classification measurements, while appropriately adjusting the risk capital reserve adjustment coefficient and the on- and off-balance sheet asset conversion coefficient for securities companies that have ranked at the top in classification evaluations for three consecutive years.

They also differentiate and enrich available stable funds, set a transition period for securities companies to adapt to new classification evaluation results, guide securities companies to proactively strengthen risk management, and support compliant and robust high-quality securities companies in moderately improving capital efficiency.

The new regulations strengthen capital constraints, appropriately raise measurement standards for over-the-counter derivatives, enhance supervision of private non-standard asset management and custodial businesses, improve regulatory effectiveness, and maintain the stable operation of the market.
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