Securities depository centres licensed to define account balance of foreign investors based on foreign currency trading contracts

Saturday, May 3, 2008
State Securities Commission (SSC) on April 29 sent the Official Letter No 759/UBCK-PTTT to depository members on the usage of foreign currency trading contracts to define account balance of foreign investors in securities transactions.

According to the letter, investors when selling or offering shares (when setting securities purchase order), balance of their own accounts opened at securities depository members must meet terms on ratio of securities deposit.

To create conditions for foreign customers when setting securities purchase orders, depository members can define the account balance with securities brokerages on the payment ability of foreign investors based on foreign currency trading contracts. However, brokers should require depository members to have responsibility of ensuring payment of their customers' securities purchase with securities depository centres and custodian banks under the current laws.