1. Is it illegal for private lending to be used in stock trading?

The basis of stock trading income is the rise of stock market value, and its income is uncertain. The income of private lending is agreed in advance, and it is certain. The risk of stock comes from the decrease of stock market value. The risk of private lending comes from the default of debt. The main responsible person for stock losses is generally the investor himself. The main responsible person for the loss of private lending is generally the debtor. They are essentially different.

second, does it constitute a crime to use loan funds for stock trading?

It may be a crime to use loan funds for stock trading. Doing stocks and futures are both high-risk returns. Generally, when applying for a loan, you will be marked with where the loan funds will be used to prevent bad debts. Once your loan funds are not used in your contract, you have the right to ask you to return the loan funds. If you want to do stocks, there are specialized margin financing and securities lending institutions.

third, is it illegal to borrow money for stock trading?

It is not illegal to borrow money for stock trading. Stock market lending, commonly known as "borrowing money for stock trading", refers to the mode that investors borrow capital from others or brokers to operate stocks, and individuals bear profits and losses, usually in the form of margin, and pay corresponding interest to others or brokers. At present, stock market lending is mainly divided into two types, one is brokerage financing, and the other is private borrowing money from securities accounts for stock trading.

Utility advantage

Compared with the financing of securities firms

1. There is no threshold limit. At present, the margin financing and securities lending business of securities firms has a high standard threshold, requiring investors to have a minimum capital limit of 5 thousand yuan, which excludes the majority of retail investors; Stock market lending can make it easy for retail investors to raise more funds for stock investment.

2. The leverage ratio is large. The effectiveness of margin financing and securities lending lies in the amplification of leverage ratio. At present, the financing margin ratio of securities firms is 6%, and the value of the margin account is only 6%, that is, the stock of 1 million yuan can only raise 1 million yuan for stock trading, and the leverage ratio is 2 times; However, the financing ratio of private stock market lending can reach 3~9 times, and the funds are all in a securities account, which is convenient for operation.

3. There is no limit on the underlying stock. At present, the scope of the underlying securities selected by securities firms is limited to the same as that of the constituent stocks of SSE 5 Index and Shenzhen Stock Exchange, and 9 stocks have been selected as the underlying stocks for margin financing and securities lending. As long as private stock market lending is not a stock with no price limit, ST stocks can be operated, and there is a lot of room for stock operation.

4. The transaction rate is low. At present, the brokerage financing, securities account trading commission rate is fixed at 2.8 ‰; The transaction commission rate of private stock market lending is usually 1.5‰, and the financing amount may be reduced a lot. This transaction cost varies greatly. For short-term investors who are used to short-term trading, there is a difference of 1.3% in the cost of 1 unilateral transactions a month, so they will not care whether the financing interest is private 2% or brokerage .8%.

5. The borrowing time is flexible. At present, the financing of securities firms takes the shortest 3 months and the longest 6 months; Private stock market lending can be one month (few companies do this), and the longest can be one year or even longer.

6. The liquidation mechanism is flexible. At present, the closing line of brokerage financing is relatively high, which is 1.25 times of the loan amount, and the computer system automatically sells it; Lending in the private stock market can only be closed when it is 1.1 times of the loan amount. If the margin cannot be replenished, it can be negotiated to keep the matching funds according to 9 times of the remaining margin and transfer the rest of the funds out of the account

Extended information: Operation process

Stock market lending requires shareholders to have a certain amount of margin, and the current method is generally triple financing, that is, the stock market financing is 3, yuan.

both borrowers and borrowers need to sign a loan agreement, which stipulates the loan term, interest rate and liquidation line. The securities account must be the securities account opened by the lender.

Generally, stock market loans are made on an annual or quarterly basis, and some powerful companies also try to borrow on a monthly or even daily basis (there are monthly and daily loans for standard investments).

At present, private stock market lending is still in the primary stage, and the areas with relatively mature financial development are not large. In cities such as Beijing, Shanghai and Shenzhen, most of them raise funds for private equity companies. Facing ordinary investors, Wuhan Zhengbiao Investment Company, which is owned by stock market celebrity Tan Zhengbiao (stock market hero and stock market thinker), has the best reputation and is guaranteed by celebrities' integrity.