Registration and Depository

CSDC adopts a registration and depository model where most securities are directly registered in the accounts of beneficial owners. The securities shall be recorded in the securities accounts of the securities holders themselves. Provided that, if, under any provisions of laws, administrative regulations or the CSRC, securities may also be recorded in the securities accounts of a nominee. CSDC has the right to require nominees to provide relevant information on beneficial owners on whose behalf they act.

An investor participating in trading activities on the floor of the Exchange appoints a securities company as his securities custodian by completing the procedures for designated trading with the securities company and may only participate in trading activities through this securities company. Under such arrangement, the securities companies are entrusted by investors to take custody of investors’ securities. CSDC is responsible for the depository of both the companies’ proprietary securities and clients’ securities in custody. CSDC sets up general ledgers for the clients and securities companies in order to maintain detailed list for companies’ proprietary securities and clients’ securities separately. In addition, securities issuers entrust CSDC to complete the registration of their issued securities.

CSDC classifies its securities registration services into initial registration, change of registration, withdrawal of registration and other services related to registration depending on the different stages of securities circulation. Initial registration includes registrations for IPO, bonds issuance, fund raising, issuing of warrants, additional offering of shares and rights issue, etc. Change of registration includes registration for share transfer through centralized trading, share transfer through non-centralized trading and any other changes applicable. If a security issuer terminates the agreement for securities registration and relevant services, CSDC will mark down the same amount in the register of securities holders. For securities that are delisted from the Exchange, CSDC will proceed to withdraw securities from registry for issuers. Other registration-related services include offering access to the register of securities holders, dividend distribution and online voting services.

CSDC provides securities companies with securities depository services. CSDC offers centralized safekeeping for securities companies’ proprietary securities and clients’ securities as well as services for maintenance of benefits entitlements, etc. Specific services include: establishing and managing securities accounts, maintaining securities holdings of securities companies’ proprietary securities and their clients’ securities via the book-entry system, providing access to securities accounts for securities holdings and holding changes therein, collecting dividends, and recording the establishment, change and termination of custody relationships between securities companies and investors. Meanwhile, CSDC also provides cross-market custody transfer services, including custody transfer for listing of enterprise bonds, cross-market custody transfer for treasury bonds and cross-system custody transfer for listed open-end funds.