Margin trading can be divided into two types: margin trading and margin trading. Customers borrowing funds from securities companies to buy securities are called margin financing and securities lending, and customers borrowing securities from securities companies to sell securities are called margin financing and securities lending.
Function:
1, play the role of price stabilizer.
Under the perfect market system, the credit trading system can play the role of price stabilizer, that is, when excessive speculation or speculation in the market leads to a sharp rise in the price of a stock, investors can sell the stock by short selling, thus prompting the stock price to fall;
On the other hand, when the value of a stock is undervalued, investors can buy the stock through financing, thus pushing the stock price up.
Margin trading helps investors to express their expectations of the actual investment value of stocks, guide the stock price to reflect its intrinsic value, slow down the fluctuation of securities prices to a certain extent, and maintain the stability of the securities market.
There are many financing channels for securities companies, such as capital, to effectively alleviate the capital pressure in the market, so the liberalization of financing and the entry of bank funds into the market will be divided into two steps. In the downturn of the stock market, it can not only solve the urgent need, but also bring quite good investment income to institutions that need capital adjustment.
2. Stimulate the A-share market to be active.
Margin trading is conducive to active market transactions, and the amplification effect of stock funds in the market is also a way to stimulate the active A-share market. Wu Chunlong and Chen Xiangsheng, analysts of CITIC Jiantou Securities, believe that the margin trading business is conducive to increasing the liquidity of the stock market.
3. Improve the living environment of brokers.
Margin business can not only bring a lot of commission income and spread income to brokers, but also generate many opportunities for product innovation, which makes it possible for self-operated businesses to reduce costs and hedge.
4, the basis of multi-level securities market
Margin trading system is the foundation of modern multi-level securities market, and it is also the necessity to solve the problem after the old and new separatist regimes.
5. Supporting policies for structural imbalance between supply and demand.
Margin trading, short selling mechanism and stock index futures are linked together, which will bring huge amplification effect to capital scale and market risk at the same time.
Under the imperfect market system, credit transaction will not only play the role of price stabilizer, but will further aggravate market volatility. The risk is manifested in two aspects. First, the overdraft ratio is too large, and once the stock price falls, its losses will double; Second, when the market index bears the market, credit trading helps to fall.
Difference:
Refinancing business includes refinancing business and securities lending business. In most cases, the price difference paid by securities financial institutions is to borrow from banks or raise funds in the money market, which is called refinancing, including capital refinancing and securities refinancing.
Extended data
Refinancing business refers to the provision of funds and securities by banks, funds, insurance companies and other institutions, and securities companies, as intermediaries, provide these funds and securities to margin customers. On August 8, 20 12, refinancing entered the countdown, and the capital invested in the stock market exceeded 100 billion.
Concept:
Investors use part of their own funds (or securities) and the remaining funds (or securities) borrowed from financial institutions to buy (or sell) a securities.
Its disadvantage is that the advance payment (or securities) borrowed from securities financial institutions is based on credit, which is the first credit relationship between securities financial institutions and investors.
On the other hand, in most cases, the difference paid by securities financial institutions is loans to banks or financing in the money market, which is called refinancing, including capital refinancing and securities refinancing.
In the process of refinancing, the second credit relationship between banks and other lenders and securities financial institutions has been formed.
Generally speaking, the opening of this business is a good thing for the banking industry. Because once the refinancing business is launched, it will provide great vitality for the capital market and be good for financial stocks for a long time.
Business role:
From the experience of overseas markets, it can be seen that the refinancing business has a great influence on the whole brokerage industry and the margin financing and securities lending business.
The capital market has a great impetus. After the introduction of refinancing business, the scale of margin financing and securities lending will be greatly improved because brokers can integrate funds or securities into securities finance companies.
Insiders pointed out that if the refinancing business is launched, the amount of funds available for financing and the number of stocks available for securities lending will be dozens or even hundreds of times the original, which will have a substantial impact on the market and even shake the fundamental model of the A-share market.
Operation mode:
According to the preliminary design, a special company will be established to operate under the refinancing business system.
The securities sources of refinancing business can include securities owned by securities companies, securities owned by securities companies and securities with security rights, securities held by funds, securities held by insurance institutional investors, securities held by major shareholders of listed companies and securities held by the National Social Security Fund.
Sources of funds can include funds owned by securities companies, funds owned by securities companies and obtained security rights, funds disposed of by insurance funds, funds disposed of by exchanges and Deng Zhong companies, directional issuance of bonds and funds borrowed through the money market.
Refinancing business? Transfer securities