With the consent of the State Council and the approval of the China Securities Regulatory Commission (hereinafter “CSRC”), China Securities Finance Co., Ltd. (hereinafter “CSF”) was founded on October 28, 2011. As a national securities financial institution and the exclusive provider of margin financing loan services in mainland China, it is dedicated to delivering supporting services for the margin transactions of securities companies. Its shareholders are Central Huijin Investment Ltd., Shanghai Stock Exchange, Shenzhen Stock Exchange, Shanghai Futures Exchange, China Securities Depository and Clearing Corporation Limited, China Financial Futures Exchange, Dalian Commodity Exchange, and Zhengzhou Commodity Exchange.
CSF's operational tenets are to abide by the principles of equality, voluntariness, fairness and good faith, and fulfill its mandates of maintaining market stability, invigorating market trading and providing market services. It steadily advances margin financing loan services to improve the margin transactions mechanism, promotes the development of credit trading frameworks to enhance capital market functions, and carries out margin financing and securities lending refinancing through market-oriented approaches, so as to prevent and defuse market risks and facilitate the stable and sound development of the capital market.
CSF's business scope includes providing funds loan and margin securities loan for securities companies’ margin transactions, regulating the supply of funds and securities in the securities market via market-oriented means, managing collateral submitted by securities companies for margin financing loan services, and other businesses approved by the CSRC.