Financing is to buy more ETF shares with a certain amount of funds as a guarantee to achieve the purpose of amplifying the income and at the same time amplifying the loss; Securities lending is to sell ETF, with certain funds as guarantee, which can not only expand profits and losses, but also short.
The ETF itself is a fund that replicates the trend of the index. The advantage of investing in ETF is that it can avoid the trouble of choosing individual stocks. ETF plus margin financing and securities lending, investors can leverage an index, which is equivalent to investing in stock index futures.
Securities lending, also known as lending securities. Nouns, uncountable. It means that accepting short selling can make securities companies earn commissions in reverse, and at the same time make investors lock in the risk of multiple positions. Securities companies lend their own stocks or stocks in customers' investment accounts to short investors. Investors borrow securities for sale, return the same kind and quantity of securities at maturity and pay interest.
Securities lending operation
Investors participate in the trading of securities, take the deposit as collateral, and then return the securities within a specified time. After selling securities by short selling, investors can repay the securities lending to securities companies by buying securities and returning them directly. Buying coupons refers to a way that investors declare buying securities through their credit securities accounts, and the securities they buy are directly transferred to members' special securities accounts for securities lending at the time of settlement.
For example, if an investor has a margin balance of 65,438+000 yuan in his credit account and intends to sell securities C with a margin ratio of 50%, he can theoretically sell securities C with a market value of 65,438+000 yuan/50%.
develop
In 1960s, securities lending has formed a special business category in developed countries, and it has been further developed after the rise of emerging capital markets in 1980s and 1990s. In China, securities lending business has been banned before, but like financing, securities lending has been banned repeatedly and has been growing secretly.
Especially in the bear market in recent years, this kind of business is even more popular, because any behavior of buying stocks in the unilaterally falling stock market is theoretically wrong. Selling melted stocks at a high level and recovering them at a low level has become the way for many private equity funds to survive in the bear market. Although this kind of behavior equivalent to "shorting" is not accepted because of policy restrictions, it also has a lot of room for survival.
Fund, in English, refers to a certain amount of funds set up for a certain purpose. It mainly includes trust and investment funds, provident funds, insurance funds, retirement funds and funds of various foundations.
From the accounting point of view, capital is a narrow concept, which refers to funds with specific purposes and uses. The fund we are talking about mainly refers to the securities investment fund.