Capital Risk Control Measures. (a) CPI Financial, as a non-bank financial institution approved by the CBRC, has agreed to comply strictly with the regulatory requirements of the CBRC to conduct its operation and business, establish effective and complete internal control and risk management systems in order to effectively manage risks and ensure the safety of all capital.
(b) When providing financial services to the Group on a non-exclusive basis, CPI Financial will ensure the Group’s rights to own, use and benefit from its funds will not be affected. CPI Financial is obligated to ensure the safety of the Group’s funds deposited with it and the Group’s independent use of such funds.
(c) If any member of the Group cannot recover the deposits placed with CPI Financial due to defaults of CPI Financial, the Group has the right to set off the deposit amounts due to the Group from CPI Financial against any amounts of loan outstanding from the Group to CPI Financial. CPI Financial does not have such set-off right.
(d) SPIC has given an undertaking to the Company that: (i) if CPI Financial encounters emergent financial difficulties in making payments, SPIC will increase the capital of CPI Financial accordingly to meet its actual needs to overcome such financial difficulties; and (ii) SPIC will provide financial support to CPI Financial in accordance with its needs to ensure that the Group will be able to withdraw all the deposits placed with CPI Financial at anytime.
(e) The monthly financial statements of CPI Financial will be provided to the senior management of the Group on the fifth working day of the following month for their reference.
(f) The Group, based on its own business needs, has the right to choose to hold no less than 10% of the equity interest in CPI Financial, hold the relevant voting rights and appoint director(s) of CPI Financial, such right to choose being granted at no premium or additional cost. If the Group chooses to exercise such right, the terms of acquisition (including determination of the price for such equity interest in CPI Financial) will be subject to negotiations by relevant parties on an arm’s length basis and approvals required under relevant laws and regulations (including the Listing Rules).
(g) The Group has the unilateral right to terminate any services provided by CPI Financial under the Framework Agreement if the fees charged by any other commercial banks in the PRC for such services are more favourable to the Group. The Group is also entitled to appoin...
Capital Risk Control Measures. Pursuant to the Renewed Financial Services Agreement, Datang Finance undertakes to take the following measures to control the capital risks:
Capital Risk Control Measures. (1) Datang Finance will ensure the safe and stable operation of the funds management information system, all of which has passed the security test in respect of the interface of online banking of commercial banks and has reached the security standards for domestic commercial banks. The system has adopted the mode awarded with CA safety certificate verification to ensure the security of the funds of the Group;
(2) Datang Finance will ensure that it operates in strict compliance with the risk monitoring indicators for financial institutions issued by the CBRC and that its major regulatory indicators such as capital adequacy ratio, interbank borrowing ratio and liquidity ratio will also comply with the requirements of the CBRC; and
(3) Any balance of the Group’s funds (after deducting the amount used for entrusted loans and the loans granted to the Group by Datang Finance) will be deposited into one or more commercial banks in the PRC as interbank deposits.
Capital Risk Control Measures. (i) Fosun Finance shall ensure the safe operation of the fund management network, ensure the security of funds, control the risk of assets and liabilities, meet the payment needs of the Group as agreed, and will also operate strictly in accordance with the specification for risk monitoring indicators of financial companies promulgated by the CBIRC. Major regulatory indicators such as capital adequacy ratio and liquidity ratio shall comply with the provisions of the CBIRC and other relevant laws and regulations.
(ii) Fosun Finance undertakes that in the event of any circumstances that may endanger the safety of the Group’s deposits or other events that may bring risks to the security of funds deposited by the Group, it shall fulfill the obligation to inform the Group in a timely manner, and the Group has the right to take effective countermeasures such as withdrawing its deposits.
Capital Risk Control Measures. Bailian Finance shall ensure the safety, liquidity and reasonable profit generation of the Group’s deposited funds.
Capital Risk Control Measures. China Energy undertakes in the Finance Company Capital Increase Agreement that in case of an emergency where Finance Company has difficulties making payments, China Energy shall, in accordance with the actual needs to address payment difficulties, satisfy the payment needs of Finance Company through various channels including without limitation the increase of capital and the provision of liquidity support to Finance Company in conformity with laws, regulations and internal regulations such as the articles of association.
Capital Risk Control Measures. Datang Finance Company will ensure the safe and stable operation of the funds management information system, which in all respects has passed the security test in respect of the interface of online banking of commercial banks and has reached the security standards for domestic commercial banks. The system has adopted the mode awarded with CA safety certificate verification to ensure the security of funds of the Group.
Capital Risk Control Measures. Except for the purpose of contribution to the deposit reserve of the PBOC in accordance with the relevant regulations, CPI Financial undertakes that without the prior consent of the Company, the deposits of the Group shall not be used for any purpose other than settlement, loan and bill discounting services amongst the members of the Group.
Capital Risk Control Measures. Pursuant to the Financial Services Agreement, Datang Finance undertakes to take the following measures to control the capital risks:
(1) Datang Finance will ensure the safe and stable operation of the fund management information system, which has undergone the security test in respect of connection to the online commercial banking and has reached the national security standards for commercial banks. The system is equipped with the model awarded with CA safety certificate to secure the funds of the Group;
(2) Datang Finance will ensure that it is in strict compliance with the risk monitoring indicators for financing companies issued by the CBRC and that its major regulatory indicators such as gearing ratio and liquidity ratio will also comply with the requirement by the CBRC; and
(3) Any balance in the Group’s deposits (after deducting the amount used for making entrusted loans and the loans made to the Group by Datang Finance) will be redeposited into one or more commercial banks in the PRC. The interests for the Group’s call deposits will be settled at the negotiated savings interest rate as announced by the PBOC, which is higher than the interest rate for call deposits that the Group currently secures from other PRC commercial banks. The Company will also adopt, among others, the following internal control and risk management measures to mitigate the financial risks which may be exposed to the Company under the Financial Services Agreement:
(1) Before entering into any transactions with Datang Finance, the Company will obtain and review quotes (i.e. savings interest rate, loan interest rate or fee quotes for the Other Financial Services) from at least four other independent financial institutions and the then savings interest rate, negotiated savings interest rate or loan interest rate as published by PBOC. For the Deposit Services, in the event that the Company notes the then negotiated savings interest rate as announced by PBOC is less than the then savings interest rate as published by PBOC or the then savings interest rate as offered by other independent financial institutions in the PRC, the Company will enter into a supplemental agreement with Datang Finance to ensure the deposit interest rate of the Deposit Services will be no less favourable than the then savings interest rate as published by PBOC or offered by any other independent financial institution in the PRC. In the event that the Company notes that the actual deposit interest rate of the ...
Capital Risk Control Measures. The Finance Company shall ensure the prudent management of its business and the strict compliance with the risk control indicators for financial institutions issued by the CBRC.
