In fact, the index of net capital is mainly used in the securities industry at present, in order to squeeze bubbles and avoid risks. Net capital is a comprehensive monitoring index to measure the capital adequacy and liquidity of securities companies. It is a highly liquid and fast-changing part of their net assets, indicating that securities companies can change at any time to meet the amount of funds needed for payment. By monitoring the net capital of securities companies, the regulatory authorities can accurately and timely grasp the solvency of securities companies and prevent liquidity risks.
Basic calculation formula of net capital
According to the new rules, the basic calculation formula of net capital of securities companies is: net capital = net assets-financial product investment risk adjustment-receivable item risk adjustment-other current asset risk adjustment-long-term asset risk adjustment-or liability risk adjustment+/-other adjustment items recognized or recognized by China Securities Regulatory Commission. Future net capital is an important reference to measure the asset quality of securities companies. In the past, securities companies were divided into comprehensive category and brokerage category according to asset size. It is a great progress to adopt the concept of pure capital in the future.