Lombard loans on the SSE.
Private, securities-backed 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. In plainer terms it is a share-backed loan: a loan against shares, not a disposal of them.
- 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 the CSRC regime, with disclosure at 5%.
The venue
The Shanghai Stock Exchange is 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 the China Securities Regulatory Commission (CSRC). Securities Law of the PRC Art. 63: substantial-shareholding disclosure required at 5% and at every 5% change above, each with a trading bar; each 1% change is announced the next day. 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.
For who must report a pledge, and what an enforcement would make public, in each market the firm covers, see the comparison of share pledge disclosure rules.
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. Unlike a stock loan in the securities-lending sense, title does not pass: the line stays registered to the holder for the life of the facility.
| Exchange | Shanghai Stock Exchange (SSE) |
|---|---|
| City · Country | Shanghai · Mainland China |
| Regulator | China Securities Regulatory Commission (CSRC) |
| Disclosure | Substantial holdings at 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 |
The China market as a whole
The China country overview gathers every China listing venue in one place: the national disclosure regime, the wider securities-backed lending picture, and the common ground behind any loan against shares listed in China.
- Lombard loans in China — the country overview: every listing venue, the national disclosure regime, currency, and how a facility is arranged.
- Lombard loans against SZSE-listed shares — Shenzhen Stock Exchange, Shenzhen, the other principal China venue.
Financing a position listed on the SSE?
Request terms →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 in structuring a Lombard loan against Shanghai-listed shares 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 its 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.