Financial management and financing process;

The first step: investors need to determine whether the proposed securities and business department have the qualifications for margin trading and securities lending business;

Securities financing The pilot business of securities lending must be approved by the China Securities Regulatory Commission; without the approval of the China Securities Regulatory Commission, no securities company may provide financing or securities lending to customers, nor may it provide any convenience or convenience for margin financing and securities lending activities between customers and customers or between customers and others. Serve. Moreover, securities companies also have qualification requirements for their subordinate business departments to carry out margin trading and securities lending business, and not all business departments may be able to handle margin trading and securities lending business.

Second step: Investors need to determine whether they meet the conditions of securities margin trading customers;

The margin financing and securities lending business has a certain impact on the investor’s asset status, professional level and investment ability. According to the requirements, the securities will make a preliminary selection of investors who apply to participate in the margin trading and securities lending business based on the principle of suitability management.

Before handling the procedures for margin trading and securities lending business, investors need to evaluate and determine whether they meet the securities margin trading and securities lending customer selection criteria.

The third step: Investors need to pass the credit reference of the securities headquarters;

Before the securities provide financing and securities lending to customers, they will conduct a credit review on investors who apply for margin trading and securities lending business. Letter, understand the customer's identity, property and income status, securities investment experience and risk preference, and record and save them in writing and electronically.

Securities will comprehensively determine the investor’s credit limit based on the application materials submitted by the investor, credit status, collateral value, contract performance, market conditions and other factors.

Step 4: Investors need to sign a margin financing and securities lending contract, a risk disclosure statement and other documents with the securities;

Before signing a margin trading and securities lending contract with the securities, investors should carefully listen to the securities’ Relevant personnel explain the business rules and contract content, understand the margin trading business rules and risks, and sign and confirm the margin trading contract and risk disclosure letter. Investors can only sign a margin financing and securities lending contract with a securities company to lend funds and securities to it.

Investors should pay special attention to and understand the following contents of margin financing and securities lending contracts: (1) The amount, term, interest (fee) rate, and interest (fee) calculation method of financing and securities lending; (2) Margin ratio, maintenance guarantee ratio, types and conversion rates of securities that can be used as margin, and scope of guaranteed claims; (3) Notification methods for additional margin calls and deadlines for additional margin calls; (4) Methods for investors to repay debts and securities The right to dispose of collateral; (5) The rights and interests of guaranteed securities and securities sold by securities lending, etc.

Step 5: Investors open credit securities accounts and credit fund accounts in the business department;

Margin and securities lending business process:

In financing transactions, Investors pay a certain margin to securities and invest a certain amount of funds to buy stocks. The margin submitted by investors for securities can be cash or securities that can be used as margin. After the securities grant credit to investors, investors can purchase securities within the credit limit that are included in the list of financing targets published by the stock exchange and securities. If the price of the security rises, the security is sold at a higher price. At this time, the investor only needs to repay the debt, and the investor can make a profit; if the price of the security falls, and the investor is required to add funds to repay the security, the investor will make a profit. The person loses money.

In securities lending transactions, investors pay a certain deposit to securities, and the entirety serves as collateral for their debts on securities. Securities lending transactions provide investors with new ways to make profits and ways to avoid risks. If investors expect that the price of a security is about to fall, they can borrow the securities and sell them, and then make a profit by buying and repaying the securities at a lower price; or they can hedge the price fluctuations of the securities they already hold by selling securities for hedging purposes.