Lombard loans on the SZSE.
Private, securities-backed credit against Shenzhen Stock Exchange-listed shares — pledged, not sold.
A Lombard loan against SZSE-listed shares is credit secured by a pledge of equity listed on the Shenzhen 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 Shenzhen Stock Exchange (SZSE), Shenzhen.
- 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 Shenzhen Stock Exchange is the principal venue for mainland Chinese growth and technology issuers, with ChiNext serving an analogous function to Nasdaq. Foreign institutional access is principally via Shenzhen-Hong Kong Stock Connect (Northbound) and QFII / RQFII.
Regulator and disclosure
The Shenzhen 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 SZSE-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 | Shenzhen Stock Exchange (SZSE) |
|---|---|
| City · Country | Shenzhen · Mainland China |
| Regulator | China Securities Regulatory Commission (CSRC) |
| Disclosure | Substantial holdings at 5% |
| Principal indices | SZSE Component Index, ChiNext Price Index |
| Segments | Main Board; ChiNext (growth / technology, with registration-based listing post-2020) |
| 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 SSE-listed shares — Shanghai Stock Exchange, Shanghai, the other principal China venue.
Financing a position listed on the SZSE?
Request terms →Other exchanges in the region.
On this market, specifically.
Liquidity and the index
Shenzhen skews younger and more growth-driven than Shanghai. The SZSE Component Index tracks the established Main Board, while the ChiNext Price Index follows the registration-based growth board that plays a role loosely analogous to Nasdaq — entrepreneurial, technology-heavy and materially more volatile at the single-stock level. That mix shapes Lombard sizing directly: Main Board leaders support steadier advances, whereas ChiNext lines warrant a lower loan-to-value and closer watch on daily turnover. As on any concentrated growth board, we weigh how quickly a holding could be reduced in stressed conditions, not merely its quoted value, before setting a facility ceiling.
Structuring notes
As with Shanghai, foreign access to Shenzhen listings runs mainly through Northbound Shenzhen–Hong Kong Stock Connect and the QFII / RQFII quotas, and the chosen channel dictates how — and whether — a line can be pledged. We confirm the custody arrangement for each holding, its eligibility within the relevant programme, and the practical route to enforcement and repatriation before a Lombard advance is committed.
ChiNext’s growth profile adds a further layer: tighter float and sharper price swings lead us to favour conservative terms and clear valuation triggers, with corporate-action and margin mechanics documented in full so the client is never surprised by a call.