Shanghai and Shenzhen Stock Exchanges standardize Bond Connect general repurchase educational content, strengthen risk warnings and compliance requirements

According to industry sources, recently the Shanghai Stock Exchange and the Shenzhen Stock Exchange each issued special notices regarding investor education and publicity for the Bond General Pledge Repo Business (hereinafter referred to as “General Repo Business”). The notices address issues such as inaccurate descriptions and insufficient risk warnings, clarifying regulatory requirements and deadlines for rectification.

It is understood that both notices focus on standardizing market behavior and protecting investors’ legitimate rights and interests. They are highly aligned in regulatory guidance and core requirements, while also reflecting subtle differences based on their respective rule systems, jointly forming a compliant framework for investor education on the General Repo Business.

Regarding core regulatory requirements, the Shanghai and Shenzhen exchanges proposed five unified standards:

1. Member institutions are required to conduct investor education through various methods to help investors understand business rules and highlight potential risks;
2. Educational products and promotional materials must be accurate, compliant, simple, and easy to understand, fully disclosing key information such as business models, collateral scope, risk characteristics, and repo rates. Fraudulent, misleading, or inducement behaviors are strictly prohibited, as well as promises of principal or yield guarantees and exaggerated returns;
3. Before participating in the business, members must fully warn investors of risks, guide them to make independent judgments, and bear investment risks themselves. When signing entrusted agreements, investors should be urged to carefully read the documents;
4. Members are required to conduct self-inspections on educational content, promotional channels, and suitability management in accordance with relevant laws, regulations, and business rules, completing rectification by April 30, 2026;
5. The exchanges will carry out supervision and inspections. For members that fail to properly self-inspect and rectify or engage in illegal inducement behaviors, appropriate self-regulatory measures will be taken.