Lombard loans on the SSE.
Private credit against Shanghai Stock Exchange-listed shares — pledged, not sold.
A Lombard loan against SSE-listed shares is credit secured by a pledge of equity listed on the Shanghai Stock Exchange. The holder pledges the shares, draws cash against a fraction of their market value, retains ownership and dividends subject to structuring, and recovers the position on repayment.
- Facilities are arranged against equity listed on the Shanghai Stock Exchange (SSE), Shanghai.
- The pledge preserves ownership, dividends, and the upside for the holder.
- Loan-to-value is set per line; funded in CNY or cross-currency.
- Structured under CSRC, with disclosure from 5%.
The venue
The principal mainland Chinese equity venue. Foreign access for institutional positions is principally via Shanghai-Hong Kong Stock Connect (Northbound) and QFII / RQFII; direct A-share holding is restricted. Structuring for non-resident collateralisation is materially different from open-market venues.
Regulator and disclosure
The Shanghai Stock Exchange operates under China Securities Regulatory Commission (CSRC). Securities Law of the PRC Art. 63: substantial-shareholding disclosure required at 5% and at every 5% change above (3-day trading restriction post-disclosure). A pledge over a substantial line is arranged with that reporting regime in view, so that the facility is both discreet and compliant, and so that positions near a control or takeover threshold are not disturbed.
Structuring a facility here
Lombard facilities against SSE-listed shares are typically arranged for a tenor of twelve to thirty-six months, funded in CNY or another currency on a cross-currency basis, with the collateral held by a qualified custodian under bankruptcy-remote arrangements. Non-recourse, limited-recourse, and full-recourse structures are available; the choice interacts with the loan-to-value and the spread.
| Exchange | Shanghai Stock Exchange (SSE) |
|---|---|
| City · Country | Shanghai · Mainland China |
| Regulator | China Securities Regulatory Commission (CSRC) |
| Disclosure | From 5% |
| Principal indices | SSE Composite, SSE 50, STAR 50 |
| Segments | Main Board; STAR Market (Sci-Tech Innovation Board, with registration-based listing) |
| Currency · Tenor | CNY · 12–36 months |
| Recourse | Non-recourse / limited-recourse / full-recourse |
Financing a position listed on the SSE?
Request terms →See also the country overview: Lombard loans in China.
Other exchanges in the region.
On this market, specifically.
Liquidity and the index
Shanghai is one of the world’s largest cash-equity venues, yet for Lombard purposes the financeable pool is narrower than the headline suggests. The SSE 50 and the broad SSE Composite frame the liquid large-cap names; the STAR 50 and the wider STAR Market — the registration-based science-and-technology board — carry higher single-stock volatility and, often, tighter free float. We concentrate advances on the deep Main Board leaders where daily turnover comfortably supports an orderly exit, and we apply firmer margin and a lower loan-to-value to STAR names, sizing every line to its own liquidity rather than to index membership alone.
Structuring notes
Everything here follows from the access route. Non-resident portfolios generally reach Shanghai stock through Northbound Shanghai–Hong Kong Stock Connect or the QFII / RQFII quotas, each with its own custody chain, settlement cycle and rules on moving or pledging the shares — direct A-share holding is not open to most foreign clients. We establish at the outset how a specific line is held, whether it can be charged within that channel, and how enforcement and cash repatriation would work under prevailing exchange-control practice. The Lombard facility is then built to fit that pathway rather than the open-market mechanics of a Western venue.