What Is a Dormant Account?
A dormant account refers to an account that has not bought or sold stocks for more than three years, has no shares in its A-share account, and has no money in the capital account of more than 100 yuan.
Dormant account
- A dormant account refers to a securities account with zero amount,
- In order to further improve the management of newly added dormant accounts, China Securities Depository and Clearing Corporation Limited issued the "Guidelines for the Operation of Newly Added Dormant Account Management Business" to make arrangements for additional stock placement and activation of newly added dormant accounts in the securities market.
- The Guidelines for Operation of New Dormant Account Management Business requires securities companies to screen for newly-added dormant A-share accounts in their management accounts based on their own conditions and in accordance with the three conditions specified in Article 1 of these Guidelines, and to combine these dormant A-share accounts with Corresponding hibernation
- (1) Investors applying for activation of the dormant A-share account and corresponding dormant fund account of the Shanghai Stock Exchange shall be handled by the securities company designated for the account; activation of the dormant A-share account of the Shanghai Stock Exchange without any designated transaction may be handled by any securities company. Investors applying for activation of the Shenzhen dormant A-share account can be handled at the securities company that originally commissioned the transaction, or at other securities companies; activation of the dormant fund account corresponding to the Shenzhen dormant A-share account must be handled at the securities company that originally authorized the transaction.
- (2) Investors applying for activation of dormant A-share accounts and corresponding dormant fund accounts shall provide valid identification documents, securities account cards, fund account cards and other materials. If the securities account card or capital account card is lost, the application for activation shall be processed after re-issuing the account card. Securities companies shall not charge any fees for the activation of dormant accounts for investors.
- (3) When a securities company activates an investor's dormant A-share account, it shall submit an activation application instruction to the registration and settlement company. The registration and settlement company activates the account in the registration and settlement system according to the application instructions of the securities company, and notifies the exchange to restore trading authority. The A-share account can be used normally on the next trading day.
- (IV) Investors holding dormant A-share accounts can also choose not to apply for activation
- Dormant account
- China Securities Depository and Clearing Co., Ltd. issued the "Notice on Putting Out of Stocks of Dormant Accounts and Withdrawing from the Trading System". As of October 8, 2007, the dormant accounts will be put into separate stocks and withdraw from the trading system. Investors who want to resume use must apply to the securities company for activation procedures.
- The "Announcement" requires that the dormant accounts be determined by each securities company in accordance with the above standards and in combination with the actual situation of the investor accounts it manages. Before September 28, 2007, the securities company implemented separate inventory and separate management of the dormant account in its OTC trading system, and submitted the detailed data of the dormant A-share account that had been put in another stock in its OTC trading system to the registration and settlement company. . Prior to October 8, 2007, the registration and settlement company will implement separate stock placement in the registration and settlement system for dormant A-share accounts submitted by various securities companies and dormant A-share accounts without designated transactions or escrow securities companies. The dormant A-share account data was sent to Shanghai and Shenzhen Stock Exchanges, respectively.
- At present, investors can hold their valid identity documents to the designated trading account or the original entrusted trading securities company to inquire whether their A-share account and fund account are dormant accounts and whether they have been placed in a separate stock by the securities company in their counter system. After October 8th, investors can apply to any securities company with their valid identity documents to check whether their A-share account is placed in another stock in the registration and settlement system.
- Starting from October 8, 2007, the dormant account withdrew from the trading system, and investors can only resume use after applying to the securities company for activation procedures. If the investor needs to resume using the dormant account, he can produce valid identification documents, securities account card, capital account card and other materials, and apply to the securities company for activation procedures in accordance with relevant procedures. The securities company does not charge a handling fee.
- Specifically, since October 8, 2007, investors who apply to activate the Shanghai dormant A-share account and the corresponding dormant fund account must handle it with the securities company designated by the account; activation of the dormant A-share without any designated transaction in Shanghai Accounts can be processed at any securities company. Application for activation of the Shenzhen dormant A-share account can be handled at the securities company that originally commissioned the transaction, or at other securities companies; activation of the dormant fund account corresponding to the Shenzhen dormant A-share account must be handled at the securities company that originally commissioned the transaction.