Lombard loans in China.
Private credit against China-listed shares — pledged, not sold, with ownership retained.
A Lombard loan against China-listed shares is credit secured by a pledge of equity listed on the SSE, SZSE. The holder pledges the shares as collateral, draws cash against a fraction of their market value, keeps beneficial ownership and dividends subject to structuring, and recovers the position in full on repayment.
- Lombard loans are arranged against shares listed on the SSE, SZSE (SSE / SZSE).
- The pledge is not a sale: ownership, dividends, and the upside stay with the holder.
- Loan-to-value is calibrated to the specific position, funded in CNY or cross-currency.
- Structured under the CSRC regime, with disclosure from 5%.
Eligible collateral and venues
Lombard Financing arranges facilities against equity listed on the principal China venues: Shanghai Stock Exchange (SSE); Shenzhen Stock Exchange (SZSE). Eligibility at the position level turns on the liquidity and free float of the specific line, its volatility, and the size of the holding relative to its typical traded volume — the same variables that drive the loan-to-value.
Regulator and disclosure
Shares listed in China are regulated by China Securities Regulatory Commission (CSRC). Substantial-shareholding disclosure is triggered from 5%, and a pledge over a large line is structured with that reporting regime in view so that the transaction remains discreet and compliant. Where a holding sits near a control or takeover threshold, the structure is arranged to avoid disturbing the position.
Funding, custody, and structuring
Facilities are typically arranged for a tenor of twelve to thirty-six months, funded in CNY or in another currency on a cross-currency basis. Throughout the facility the pledged shares are held by a qualified custodian under bankruptcy-remote arrangements, so the security is clean and the holder’s ownership is preserved. Non-recourse, limited-recourse, and full-recourse structures are available, and the choice interacts with the loan-to-value and the pricing.
| Listing venue(s) | Shanghai Stock Exchange (SSE); Shenzhen Stock Exchange (SZSE) |
|---|---|
| Regulator | China Securities Regulatory Commission (CSRC) |
| Currency | CNY (cross-currency available) |
| Disclosure threshold | From 5% substantial-holding disclosure |
| Principal indices | SSE Composite, SSE 50, STAR 50; SZSE Component Index, ChiNext Price Index |
| Indicative tenor | 12–36 months, renewable by agreement |
| Recourse | Non-recourse / limited-recourse / full-recourse |
Considering a Lombard loan against a China-listed position?
Request terms →The listing venues in China.
SSE
Shanghai Stock Exchange — Shanghai. Regulator: CSRC.
SSE Lombard loans →SZSE
Shenzhen Stock Exchange — Shenzhen. Regulator: CSRC.
SZSE Lombard loans →Lombard loans across Asia-Pacific.
On this market, specifically.
Disclosure and regulation
Mainland China discloses substantial holdings under Article 63 of the PRC Securities Law: a holder crossing 5% files, refiles on every further 5% band, and observes a short trading freeze in the days following disclosure — a timing point that matters where a Lombard facility might one day need to enforce. The CSRC supervises. The larger structural fact is access: direct A-share ownership by non-residents is restricted, so most international portfolios reach these shares through Stock Connect or the QFII / RQFII channels. We shape any Lombard credit around the access route the client already holds, since that route governs custody, enforcement and repatriation.
An illustrative example
For illustration only: a client with CNY 200 million of an A-share large-cap, held through an eligible access route, might draw a Lombard loan at a cautious 40% loan-to-value — the conservative end of the indicative 20–65% range — releasing on the order of CNY 80 million while the position stays intact. The advance would typically be funded offshore in USD or CHF against the onshore collateral. These figures are hypothetical; a real facility would turn on the Connect or QFII / RQFII treatment of the specific line, its turnover and the applicable exchange-control considerations.
Illustrative only — not an offer, a quotation, or a commitment to lend.