Sun Xiaoxiao: What does the regulatory authorities often say about "investor suitability management"?
R2: There are more and more varieties traded in the securities market, and the design of some varieties is more complicated. In order to guide investors to invest rationally, regulators must manage the appropriateness of investors.
Sun Xiaoyan: That's true. Margin trading, stock index futures and various derivatives are much more complicated than ordinary stock trading, and not every investor is suitable for trading in the market.
R2: Coupled with the huge number of investors in China, their personal qualities and trading experience are uneven. Some investors may rashly make transactions beyond their risk tolerance. Therefore, the establishment of an investor suitability system by the regulatory authorities is an initiative to protect investors from the source.
Sun Xiaoxiao: Strengthening the proper management of investors to prevent investors from straying into high-risk areas is also conducive to improving the stability of the capital market.
R2: In short, there is a lot of work to be done. First of all, we should collect information such as investors' identity, finance, knowledge and trading experience, conduct risk assessment and classification, and strengthen the guidance and management of different types of customers.
Sun: We should also grasp the needs of investors, increase product development based on demand, and guide investors to rationally choose varieties with risk-return characteristics and risk tolerance.
R2: We should also fully disclose the risks to investors. Actively, objectively and truly introduce the situation to investors, reveal risks, and guide investors to make rational judgments and choices.
Sun Xiaoxiao: Isn't this a lot like the foreign movie "Hierarchical Management"?