China Securities Depository and Clearing Corporation Limited (CSDC), headquartered in Beijing, is a prominent financial infrastructure for China’s capital market. It operates under the supervision of the China Securities Regulatory Commission (CSRC). CSDC Shanghai Branch specifically provides centralized registration, custody, and clearing services for the Shanghai securities market.

Since its establishment in 2001, CSDC Shanghai Branch has consistently enhanced its securities registration and clearing system. It caters to over 100 million individual investors and 360,000 institutional investors, as well as serving 1,398 stock issuers and 2,905 bond issuers. Additionally, it engages with 260 domestic and overseas clearing participants. Its business scope encompasses A-shares, B-shares, Hong Kong shares, bonds, funds, asset securitization, other actuals, stock options, and other derivatives. Settlement modes available include multilateral net central counterparty (CCP) settlement, real-time gross settlement (RTGS), bilateral net non-CCP settlement, and collection and payment on behalf of others. In 2018, the average daily settlement amount for A-shares and B-shares totaled RMB 3.97 trillion, with RMB 9.41 billion for Hong Kong Stock Connect, an average daily stock options settlement premium of RMB 745 million, and a total of 300,617 derivatives contracts.

CCDC has established a secure and efficient technical system to support more than 1 billion securities accounts and handle a trading volume of 120 million transactions on the secondary market daily. The PROP electronic settlement network, developed independently by CCDC, covers over 4,000 industry organizations, including domestic and overseas securities dealers, listed companies, fund companies, custodian banks, and settlement banks.

Main business:

I. Securities Account Business: CSDC facilitates the opening and management of securities accounts for investors.

II. Securities Registration: CSDC offers securities and rights registration services for securities issuers. This includes managing the list of securities holders, verifying the legal rights and interests of holders, and providing pledge registration services for holders.

III. Securities Settlement: CSDC is responsible for opening and managing settlement accounts for participating institutions involved in the settlement process. It organizes settlement participants to carry out secure and efficient settlement and delivery of securities and funds, thereby mitigating settlement risks within the Shanghai securities market.

IV. Securities Depository: CSDC serves as the centralized custodian for securities, facilitating secure custody and transfer of securities. It also acts as a trusted intermediary for distributing securities rights and interests to investors.