1. Margin trading can integrate more information into securities prices and provide trading activities in the opposite direction for the market. When investors think that the stock price is too high and too low, they can promote the stock price to be reasonable through financing buying and selling, which is conducive to the formation of an internal price stability mechanism in the market.
Second, margin financing and securities lending can enlarge the supply and demand of funds and securities to a certain extent, increase the trading volume of the market, thus activating the securities market and increasing its liquidity.
Third, margin trading can provide investors with new trading methods, change the unilateralism of the securities market and become a tool for investors to avoid market risks.
Fourth, margin financing and securities lending can broaden the business scope of securities companies, to a certain extent, increase the channels for the use of their own funds and securities, and increase the allocation of other funds and securities financing after circulation, thus improving the efficiency of the use of financial assets. Margin trading, as an innovative trading mechanism of great significance in the securities market, on the one hand provides investors with a new way of profit, enhances their trading concept and changes the development model of "unilateral market", on the other hand, it also contains more complicated risks than ordinary trading in the past. In addition to the market risk of ordinary transactions, margin trading also includes its own unique leverage trading risk, compulsory liquidation risk, regulatory risk and other risks such as credit and law. Before margin trading, investors must have a clear understanding of related risks in order to avoid losses to the maximum extent and realize profits. The main risks that margin trading may face include:
First, the risk of leveraged trading.
Margin trading has the characteristics of leveraged trading. When investors engage in margin trading, like ordinary trading, they will face the risk of misjudgment and loss. As margin financing and securities lending provide a certain proportion of trading leverage in investors' own investment scale, the losses will be further amplified. For example, investors generally buy a stock at 654.38+0 million yuan, and the stock falls from 654.38+00 yuan/share to 8 yuan/share, and the investor loses 200,000 yuan, with a loss of 20%; If an investor buys the same stock with 6,543,800,000 yuan as a deposit and 2,000,000 yuan as a 50% deposit ratio, the stock will drop from 6,543,800 yuan/share to 8 yuan/share, and the investor will lose 400,000 yuan and 40%. Investors should be soberly aware of the high-yield and high-risk characteristics of leveraged trading.
In addition, margin trading needs to pay interest fees. After investors buy securities by financing, if the price of securities falls, investors will not only bear the investment losses, but also pay the financing interest; After an investor sells a security short, if the price of the security rises, the investor will not only bear the investment loss caused by the rising price of the security, but also pay the short selling cost.
Second, the risk of forced liquidation.
In the margin trading, there are complicated creditor-debtor relationship and guarantee relationship between investors and securities companies in addition to the entrusted trading relationship of ordinary transactions. In order to protect their own creditor's rights, securities companies monitor the assets and liabilities of investors' credit accounts in real time, and under certain conditions, they can carry out compulsory liquidation of assets guaranteed by investors.
Investors should pay special attention to several situations that may trigger compulsory liquidation:
(1) During the margin trading, if the investor fails to pay off the debt within the time limit agreed in the contract, the securities company has the right to execute compulsory liquidation in accordance with the contract, which may bring losses to the investor;
(2) During the period when investors are engaged in margin trading, if the proportion of maintenance guarantee is lower than the minimum maintenance guarantee due to the fluctuation of securities price, the securities company will send the notice of additional collateral to the investors according to the notice and delivery method agreed in the contract. If the investor fails to add the collateral in full within the agreed time, the securities company has the right to force the liquidation of the assets in the investor's credit account, and the investor may face losses;
(3) During the period when an investor is engaged in margin trading, if the assets are subject to property preservation or compulsory enforcement measures by the judicial organs for their own reasons, the assets in the investor's credit account may be forced to liquidate their positions and settle the margin trading debts in advance.
Third, regulatory risks.
Regulatory authorities and securities companies will take regulatory measures on margin trading in case of abnormal margin trading or systemic risks in the market, so as to maintain the stable operation of the market, and may even suspend margin trading. These regulatory measures will have an impact on investors engaged in margin trading. Investors should pay attention to the potential losses caused by regulatory measures, pay close attention to market conditions and take precautions in advance.
(a) investors engaged in margin trading, if the underlying securities are suspended or terminated, investors may face the risk of being liquidated by securities companies in advance, which may cause losses to investors;
(2) During the period of margin trading, if the securities company raises the conditions of additional collateral and forced liquidation, the investor will enter the state of additional collateral or forced liquidation in advance, which may cause losses to the investor;
(3) During the period when investors are engaged in margin financing and securities lending business, securities companies have formulated a series of trading restrictions, such as the scale of single customer financing, the proportion of margin financing and securities lending scale to net capital, and the proportion of single guaranteed securities to the total market value of the securities. When these indicators reach the threshold, investors' transactions will be restricted and may cause losses to investors;
(4) Securities companies with investors engaged in margin financing and securities lending business may have problems in margin financing and securities lending qualifications, which may cause investors to be unable to conduct margin financing and securities lending transactions and may bring losses to investors.
Fourth, other risks.
(1) During the period when investors are engaged in margin trading, if the benchmark interest rate for loans of financial institutions stipulated by the People's Bank of China is raised at the same time, the securities company will raise the margin interest rate or margin ratio accordingly, and investors will face the risk of increasing the transaction cost of margin trading;
(2) During the period when investors are engaged in margin trading, it is very important for the notice of relevant information to be delivered. The specific way, content and requirements of notice delivery are usually stipulated in the margin financing and securities lending contract. If a securities company has fulfilled its notification obligation in accordance with the requirements of the margin financing and securities lending contract, it shall be deemed to have been delivered. If investors fail to pay attention to the contents of the notice and take corresponding measures, they may bear adverse consequences.
(3) During the margin trading, investors may suffer unexpected losses due to improper keeping of credit securities account cards, identity documents and trading passwords, or lending their credit accounts to others for use, because any trading application submitted after password verification will be regarded as the investor's own behavior or the behavior authorized by the investor's law, and the legal consequences arising therefrom will be borne by investors themselves.
(4) During the period when investors engage in margin trading, if their credit qualifications decline, the securities company will correspondingly reduce the credit limit for investors, thus restricting investors' trading and investors may suffer losses.
Before participating in margin trading, investors should carefully study the relevant laws and regulations on margin trading, master the business rules of margin trading, read and understand the margin trading contracts and risk disclosure clauses of securities companies, fully evaluate their risk tolerance, make good capital arrangements, and reasonably avoid all kinds of risks. Impact on investors
1, which is conducive to providing investors with diversified investment opportunities and risk avoidance means.
All along, China's securities market is a typical one-sided market, which can only be long and not short. Investors can only buy stocks first and then sell them at a high price if they want to get the spread income. Once there is a crisis in the market, there will often be a continuous "diving" and the stock price will fall out of control. Therefore, in the absence of securities credit trading system, investors have no means to avoid risks except temporarily withdrawing from the market in the bear market. The introduction of margin financing and securities lending allows investors to be both long and short, which not only gives them the opportunity to make profits from investment, but also allows them to sell margin financing and securities lending to avoid risks when encountering a bear market.
2. It is conducive to improving the capital utilization rate of investors.
Margin trading has a financial leverage effect, which enables investors to obtain a certain amount of funds or stocks beyond their own funds for trading, artificially expanding investors' trading ability, thus improving investors' capital utilization rate. For example, investors financing securities companies to buy securities are called "short selling". When investors predict that the price of securities will rise, they can borrow money from securities companies to buy securities by providing a certain proportion of guarantee money, and the investors will repay the principal and interest and a certain handling fee at maturity. When the price of securities rises in line with expectations and exceeds the interest and handling fees to be paid, investors may get much higher extra income than ordinary transactions. But this kind of income and risk are equal, that is, if the price of securities does not rise as expected by investors, but falls, investors will not only bear the investment losses caused by the decline of securities, but also bear the interest cost of financing, which will increase the overall losses of investors.
3. It is beneficial to increase the information reflecting the securities price.
The financing balance (the difference between the number of stocks bought and the number of securities repaid every day) and the securities lending balance (the difference between the number of stocks sold and the number of securities repaid every day) generated in credit transactions provide important indicators to measure the degree and direction of speculation: the larger the financing balance, the higher the stock market will rise; When the balance of securities lending is large, the stock will fall. The greater the amount of margin financing and securities lending, the greater the credibility of this trend. Therefore, after the formal launch of margin financing and securities lending, the open market statistics of margin financing and securities lending can provide new information for investors' investment analysis.
Influence on the securities market
Margin trading can enlarge the supply and demand of securities, increase the trading volume, and amplify the use effect of funds, which has an obvious effect on increasing the liquidity and trading activity of the stock market, thus effectively reducing the liquidity risk. According to statistics, the foreign margin trading volume accounts for more than 15% of the total securities trading volume, the United States accounts for 16% ~ 20%, Japan accounts for 15%, and Taiwan Province Province accounts for 20% ~ 40%. At the same time, margin financing and securities lending also help to improve the stock price formation mechanism and play a role in buffering the market fluctuations. There is no substitute because there are a certain number of securities. If the securities market is limited to spot trading, then the securities market will run in one direction. When the supply and demand are unbalanced, the stock price will inevitably rise and fall, or skyrocket and plummet. However, the cooperation between credit trading and spot trading can increase the flexibility of stock supply and demand. When the stock price rises excessively, "short sellers" expect the stock price to fall, so they sell ahead of time, which increases the supply of stocks. Spot holders will not continue to raise prices or take advantage of high prices, and the market will not overheat. When the stock price really falls, "short sellers" need to make up for the fall, which increases the demand for buying, thus pulling the stock price back. "Short selling" transactions also played a buffer role in the market.
Influence on securities companies
1 is conducive to improving the effectiveness of financing channels for securities companies.
From the perspective of overseas margin financing and securities lending system, the debt financing of securities companies mainly comes from banks, securities finance companies and money markets. Especially in Japan, South Korea and Taiwan Province, securities finance companies are important financing channels for securities companies, including liquidity financing needed for their business development. At present, the effective financing channels of China's securities companies are still limited, and the financing scale of the repurchase market is small, which cannot meet the financing needs of securities companies. However, it is difficult to carry out financing methods such as stock pledge loan, short-term financing bonds and bond issuance, which makes equity financing still the main financing method of securities companies. This financing structure is unreasonable for financial enterprises. After the introduction of margin financing and securities lending, especially after the establishment of securities finance companies, it can provide new compliance financing channels for securities companies and help improve the asset-liability structure of securities companies in China.
2. It is conducive to promoting securities companies to establish new profit models.
At present, the transaction fee income of brokerage business of securities companies in China is still the main source of income for securities companies. The development of margin financing and securities lending business will undoubtedly provide an important source of income for securities companies. The profit model of securities companies in margin financing and securities lending business includes, but is not limited to, the interest and handling fee of margin financing and securities lending business itself, the extra commission charged due to the enlarged transaction brought by margin financing and securities lending, and the account management fee charged from margin financing and securities lending account. In the United States, the business income of margin financing and securities lending accounts for about 5%- 10%. At the same time, the promotion of trading activity by credit trading is also conducive to improving the living conditions of brokerage business of securities companies. The launch of margin financing and securities lending business will be beneficial to the successful transformation of the profit model of China's securities industry.
3. It is conducive to promoting the product innovation of securities companies.
Judging from the development of the securities market, all kinds of innovations need short selling mechanism. One of the conditions of stock index futures options and stock futures options is the existence of short selling arbitrage mechanism. Compared with stock futures and options, the leverage amplification and credit expansion of securities margin trading are smaller, and the risk of securities credit trading is between spot and futures options, which is more universal than futures options. For example, the 130/30 investment strategy product, which has been widely popular in the world, is based on the margin financing and securities lending system. Therefore, the introduction of margin financing and securities lending is helpful to stimulate the product innovation ability of securities companies.