securities margin trading, also known as "securities credit trading" or margin trading, refers to the behavior that investors provide collateral to securities companies qualified for margin trading, borrow funds to buy securities (financing trading) or borrow securities and sell them (margin trading). Including securities firms' financing and securities lending to investors and financial institutions' financing and securities lending to securities firms. From a global perspective, the margin trading system is a basic credit trading system. On March 3, 21, the Shanghai Stock Exchange and Shenzhen Stock Exchange issued announcements respectively, indicating that the margin trading system will be officially opened on March 31, 21, and the margin trading declarations of pilot members will be accepted. Margin trading business was officially launched.
how do you know which stock can be used for margin financing and securities lending
if you are inquiring about the inquiry method of the underlying securities of margin financing and securities lending, you can inquire through the websites of Shanghai or Shenzhen stock exchanges according to the market where the stock belongs.
The specific inquiry method is as follows:
Website of Shanghai Stock Exchange-> "Service" at the bottom of the page-> Margin trading-> Transaction information-> List of underlying securities and securities that can be used to offset the deposit-> "List of underlying securities bought by financing/List of underlying securities sold by short selling".
website of Shenzhen Stock Exchange-> "information disclosure" in the upper left corner-> Margin information->; "The underlying securities information" in the query.
note: the exchange may adjust the selection criteria and list of the underlying securities for margin financing and securities lending according to market conditions.
the list of the underlying securities announced by a securities company to its clients shall not exceed the scope of the underlying securities announced by the exchange, which shall be subject to the specific securities firms.
If the underlying securities of margin financing and securities lending are stocks, the following conditions shall be met:
1. Having been listed and traded on the exchange for more than 3 months;
2. The circulating share capital of the underlying stocks purchased by financing is not less than 1 million shares or the circulating market value is not less than 5 million yuan, and the circulating share capital of the underlying stocks sold by securities lending is not less than 2 million shares or the circulating market value is not less than 8 million yuan;
iii. The number of shareholders shall be no less than 4,;
IV. None of the following situations occurred in the last three months:
1. The average daily turnover rate is lower than 15% of the average daily turnover rate of the benchmark index, and the average daily turnover amount is less than 5 million yuan;
2. The deviation between the average daily fluctuation and the average fluctuation of the benchmark index exceeds 4%;
3. The fluctuation range is more than 5 times that of the benchmark index.
5. (Shanghai market) The stock issuing company has completed the share-trading reform;
VI. The stock exchange has not implemented risk warning;
VII. Other conditions stipulated by the Exchange.
References: Detailed Rules for the Implementation of Margin Trading in Shanghai Stock Exchange and Detailed Rules for the Implementation of Margin Trading in Shenzhen Stock Exchange.