Financing buying, short selling

Generally speaking, there are three ways:

1. Decentralized credit model, that is, customers borrow and sell securities from securities companies, and securities companies borrow and sell securities from financial markets, that is, refinancing. This model is mainly concentrated in developed capital markets, such as the United States and Hong Kong.

2. Centralized credit model, represented by Japan and South Korea.

3. Dual-track credit model represented by China and Taiwan Province Province.

Second, how to finance with securities companies, what are the specific ways?

First, the financing methods of securities companies

1, equity financing

Equity financing of securities companies mainly refers to the establishment of departments of securities companies to publicly issue shares and go public, and the use of equity financing by securities companies in the course of operation. Equity financing has the characteristics of permanent no maturity date, no repayment and small principal and interest, which has become a necessary financing ability for the long-term development of securities companies. In addition, this financing method can also promote the transformation of enterprises into self-financing, self-development and self-restraint market competitors.

2. Debt financing

Bond issuance financing is a financing method for securities companies to issue securities by promising to repay the principal and interest in a certain period in the future, mainly including the purpose of issuing bonds in order to raise the interest rate of bank savings deposits, which is generally higher than the same period.

3. Bill financing

Bill financing is the most important financing method in the history of money market. Commercial paper is a kind of commercial paper with a specific term, which is only sold to institutional investors and can be used in the market for a short period, generally 25-45 days on average. Commercial paper is usually sold at a discount at face value, and part of the discount is the interest paid to investors in advance after maturity.

4. Inter-bank lending and financing

Inter-bank lending is generally provided by commercial banks to brokers, who borrow money from commercial banks with their shares. The term of the loan is agreed by both parties, and its purpose is to adjust the position and deal with the temporary surplus and deficiency of funds. Inter-bank lending is generally short (usually 1 day, 2 days or a week, at least a few hours or overnight).

5. Securities repurchase financing

The specific way of securities repurchase financing is: creditors buy securities from brokers and stipulate that brokers buy back securities at agreed prices within a certain period of time. The bid-ask spread is the interest payable by the securities company. Its essence is short-term financing between financial institutions with securities as collateral.

Second, direct financing.

Refers to bank credit, credit from non-bank financial institutions, entrusted loans, project financing loans and other financing activities. , by the unit directly with capital reserve or through securities and joint ventures, without any financial intermediary. Direct flow is faster, the cost is low, and it requires high capital and investment skills. Some of them need to meet each other to clinch a deal.

Three, how to finance with securities companies, what are the specific ways?

I. Equity financing Equity financing of securities companies mainly refers to the raising of capital when a securities company is established or when it increases its capital and shares, and the securities company publicly issues shares and goes public, and the securities company uses equity financing in its business process. Equity financing has the characteristics of permanent non-maturity, no need to return, and no pressure to repay the principal and interest. Because the risk of raising funds is small, long-term funds are an important way for securities companies to raise funds and the financing ability that securities companies must have for their long-term development. In addition, this financing method can also promote enterprises to change their operating mechanisms and truly become independent, self-financing, self-development and self-restraint market competition subjects. Second, debt financing bond financing is a financing method in which a securities company, as a debtor, promises to repay the principal and interest and issue securities in a certain period of time in the future. The debt financing methods of securities companies mainly include issuing bonds and bank loans. The purpose of issuing bonds by securities companies is to raise medium and long-term funds, and the interest rate of bonds issued is generally higher than that of bank savings deposits in the same period. Compared with equity financing, bond financing has the characteristics of repayment, maturity, fixed interest, security and liquidity. In addition, the capital cost of bond financing is lower than that of equity financing, which can ensure that the control right of the company can play the role of financial leverage. However, the amount of bond financing is limited, and the financial risk is high, so the restrictions on issuing bonds are much stricter than long-term borrowing. Bank loan financing refers to securities companies borrowing from banks to raise the required funds, including _ 1. Short-term credit loans are mainly provided by banks with revolving credit lines, that is, brokers reach agreements with commercial banks or other financial institutions. If a securities company needs funds within a certain period of time, it has the right to withdraw from the credit line without applying to creditors again. This credit line is only used as an emergency fund when the securities company is in trouble. This financing method is widely used by European and American brokers. 2. Mortgage loan This kind of loan refers to a loan issued by a bank with the property of a securities company or a third party as collateral. At present, the properties used by securities companies to mortgage loans to banks mainly include all kinds of securities representing property ownership and creditor's rights, usually including self-operated government bonds, self-operated stocks, commercial papers and self-owned fixed assets. The advantages of bank loan financing are convenience, flexibility, various terms and types-the cost is lower than that of stock financing and bond financing. The initial application for bank loans may be more difficult and the procedures more troublesome. The number of bank loans is limited, which is generally not as good as stocks and bonds. Third, bill financing Bill financing is the oldest financing method in the money market. Commercial paper is a short-term promissory note with a specific term, which is only sold to institutional investors and can be used in the market. The duration can be several months or less, with an average of 25-45 days. Commercial paper is usually sold at a discount at face value, and part of the discount is the interest paid to investors in advance after maturity. The issued bills can be freely transferred and discounted. This is a highly liquid credit instrument. In western developed countries, bill financing is mostly used by large production enterprises in the early stage. At present, bill financing has become an important way for financial companies, including brokers, to finance short-term funds.

Fourth, how to do margin financing and securities lending? For example, I want to invest in securities.

The concept of margin financing and securities lending, also known as "securities credit transaction", refers to the behavior of investors providing collateral to securities companies with Shenzhen Stock Exchange membership, borrowing funds to buy securities listed in this exchange or borrowing securities listed in this exchange and selling them. Including securities companies financing and securities lending to investors and financial institutions financing and securities lending to securities companies. The Securities Law before the amendment prohibited the securities credit transaction of margin financing and securities lending. Financing refers to borrowing money to buy securities. Securities companies lend money to customers to buy securities, and customers repay the principal and interest at maturity. Customers buying securities from securities companies are called "short selling". 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". At present, there are basically four popular financing and securities lending modes in the world: securities finance company mode, investor direct credit mode, securities company credit mode and registration and settlement company credit mode. Benefits of margin trading 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 the market is over-speculative or the stock price soars, investors can sell stocks through margin financing and securities lending, 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 many ways for securities companies to raise funds, 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. The active margin financing and securities lending business in the A-share market is conducive to active market transactions, and it is also a way to make use of 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 brokers. Margin trading 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 basic margin financing and securities lending system of multi-level securities market 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.