| Article 59 |
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| Article 60 |
The qualified net amount of self-owned capital referred to in Paragraph 2 of the preceding Article is the difference/balance amount of the added sum of the capital under following tiers I and II minus the following non-liquid items shown in the balance sheet: prepaid amount, special funds, long-term share equity investment, fixed assets, intangible assets, business operation guaranty, transaction settlement funds, security deposits, deferred loans, lease-out asset, idle assets, deferred income taxed assets - illiquid, restricted assets - illiquid:
1. Tier I capital: the total of capital stock (common stock, perpetual non-cumulative preferred stock), capital reserve, retained earnings or accumulated losses, unrealized losses on long-term investments in equity securities due to price decline, accumulated translation adjustment, treasury stock, net loss not recognized as pension cost, and the profit/loss of the current year up to the current month, among which the unrealized losses on long-term investments in equity securities due to price decline shall be limited to the re-investment in domestic listed and OTC companies.
2. Tier II capital: the total of capital stock (perpetual cumulative preferred stock), reserve for trading losses, reserve for losses from breach of contract, net profit from valuation of securities, unrecognized net loss on valuation of operating securities, unrecognized profit from appreciation of market price of operating securities, among which net profit from valuation of securities, unrecognized net loss on valuation of operating securities, unrecognized profit from appreciation of market price of operating securities shall be calculated as follows:
(1) net profit from valuation of securities: 70% of the difference of fair value in excess of the book value of the short-term investments, operating securities - call (put) warrant, operating securities - dealing department, operating securities - underwriting department, operating securities - hedge, long-term investments, etc. on the balance sheet shall be recognized; provided that the long-term investments which have been recorded as deduction assets shall not be included, and that operating securities - hedge shall be fully recognized after deduction of the amount of loss on deferred call (put) warrants.
(2) unrecognized net loss on valuation of operating securities: limited to the difference of the fair value below the book value of the operating securities and the shortage of allowance for decline in value entered on account.
(3) unrecognized profit from appreciation of market price of operating securities: to be calculated based on the allowance for decline in value excessively recorded on the account.
Deduction amounts for deductible assets under the preceding paragraph shall be prescribed by the Commission.
Where the amount of tier I capital exceeds that of tier II capital, calculation shall be based on the amount of tier I capital. |
| Article 61 |
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| Article 62 |
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| Article 63 |
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| Article 64 |
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| Article 65 |
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| Article 66 |
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| Article 67 |
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