Lombard loans on the SZSE.
Private 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.
- 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 CSRC, with disclosure from 5%.
The venue
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 China Securities Regulatory Commission (CSRC). Securities Law of the PRC Art. 63: substantial-shareholding disclosure required at 5% and at every 5% change above. 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 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.
| Exchange | Shenzhen Stock Exchange (SZSE) |
|---|---|
| City · Country | Shenzhen · Mainland China |
| Regulator | China Securities Regulatory Commission (CSRC) |
| Disclosure | From 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 |
Financing a position listed on the SZSE?
Request terms →See also the country overview: Lombard loans in China.
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.