Securities lending is to borrow securities to sell and then return them as securities. Securities companies lend securities to customers for sale, and customers return the same kind and quantity of securities at maturity and pay interest. Customers selling securities to securities companies are called "short selling".
"Margin trading", also known as "securities credit trading", refers to the behavior that investors provide collateral to membership securities companies like Shenzhen Stock Exchange and Shanghai Stock Exchange, borrow funds to buy securities listed in this exchange or borrow securities listed in this exchange and sell them. Including securities companies financing and securities lending to investors and financial institutions financing and securities lending to securities companies.
1, play the role of price stabilizer.
Under the perfect market system, the credit trading system can play the role of price stabilizer, that is, when excessive speculation or speculation in the market leads to a sharp rise in the price of a stock, investors can sell the stock through short selling, thus prompting the stock price to fall; On the other hand, when the value of a stock is undervalued, investors can buy the stock through financing, thus pushing the stock price up.
2. Effectively relieve the pressure of market funds.
There are various financing channels for securities companies, such as funds, so the liberalization of financing and the entry of bank funds into the market will be divided into two steps. In the downturn of the stock market, it can not only solve the urgent need, but also bring quite good investment income to institutions that need capital adjustment.
3. Stimulating the active financing and securities lending business in the A-share market is conducive to active market transactions, and it is also a way to stimulate the A-share market by using the amplification effect of existing funds in the market. Wu Chunlong and Chen Xiangsheng, analysts of CITIC Jiantou Securities, believe that the margin trading business is conducive to increasing the liquidity of the stock market.
4. Improve the living environment of securities companies.
Margin business can not only bring a lot of commission income and spread income to brokers, but also generate many opportunities for product innovation, which makes it possible for self-operated businesses to reduce costs and hedge.
5, the basis of multi-level securities market
Margin trading system is the foundation of modern multi-level securities market, and it is also a supporting policy to solve the structural imbalance between supply and demand that will inevitably occur after the old and new separatist regimes.
Margin trading, short selling mechanism and stock index futures are linked together, which will bring huge amplification effect to capital scale and market risk at the same time. Under the imperfect market system, credit transaction will not only play the role of price stabilizer, but will further aggravate market volatility. The risk is manifested in two aspects. First, the overdraft ratio is too large, and once the stock price falls, its losses will double; Second, when the market index bears the market, credit trading helps to fall.
Margin trading declaration can be divided into two types: margin buying declaration and margin selling declaration. The contents of the financing purchase declaration shall include ① the investor's credit securities account number, ② the code of the special seat for margin financing and securities lending, ③ the code of the underlying securities, ④ the purchase quantity, ⑤ the purchase price (except the market price declaration), ⑤ the "financing" logo and ⑤ other contents required by this Exchange.
The contents of the securities lending and selling declaration shall include ① the investor's credit securities account number, ② the code of the special seat for securities lending and selling, ③ the code of the underlying securities, ④ the selling quantity, ⑤ the selling price (except the market price declaration), ⑤ the "securities lending" logo and ⑤ other contents required by this Exchange. Among them, the declared quantity of the above financing buying and selling is 100 shares (shares) or its integral multiple.