Good after-hours sales: According to news from China Securities Depository and Clearing Co., Ltd. on the 17th, in order to implement the spirit of the special meeting of the State Council Financial Committee, reduce market capital costs, and serve the healthy development of the real economy, China Securities Depository and Clearing Co., Ltd. cooperates with the ongoing payment-versus-versus-versus-versus-versus (DVP).

Reform, starting from April 2022, the minimum settlement reserve payment ratio for stock business will be lowered from 18% to 16%. Some brokerage analysts said that assuming that customer reserves are all generated by stock business, and the brokerage company had previously followed the minimum

The settlement reserve fund payment ratio is paid. This reduction in the payment ratio is expected to release nearly 40 billion yuan.

There is no doubt that it is good for brokers/futures!

So why is it good for brokers/futures?

Let’s break down what “settlement reserve funds” are.

Settlement reserve fund: refers to the amount deposited by settlement participants engaged in all or part of the settlement business of securities, securities investment funds, and other securities financial products listed on the stock exchange for the clearing and delivery of proprietary securities transactions and other businesses.

The amount from the clearing agency and the amount deposited by the company to the designated clearing agency for the client on behalf of the client for clearing and delivery of securities transactions and other businesses.

The above is a professional explanation. There are no punctuation marks in the middle. I even added a few specially.

It doesn’t matter if you don’t understand. The above explanation is a bit confusing.

To put it simply: securities companies, futures companies or other settlement institutions set up transaction fee reserves for clients to buy and sell on their behalf. The larger the business scale, the greater the amount of the reserve.

When we trade stocks, we entrust a securities company to buy and sell. The securities company submits our entrusted sales to the exchange through the system to form a match, and then the transaction is completed.

After the transaction is completed, there must be settlement, that is, accounting (the whole thing is automatically calculated by the system), and there will be a settlement agency in the middle to conduct systematic settlement.

Before settlement, you need to have reserves in the settlement institution, which is the calculation reserve. Settlement reserves refer to the funds deposited by settlement participants in their capital settlement accounts for securities transactions and non-trading settlements in accordance with regulations.

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After settlement is completed, your corresponding brokerage will feedback your profit and loss to your account.

Calculation is automatically calculated by the system, and settlement requires matching after the market closes.

Therefore, this is why our A-share transactions not only require T+1, but also transfer the amount to the card on T+1.

It will come out soon, but you still have to give people time.

The brokerage is the settler entrusted by us, so the brokerage needs to pay reserves. This ratio was originally 18%, and now it has been reduced to 16%, a decrease of 2%. Invisibly, it creates more cash flow for the brokerage. These cash flows, even for the brokerage

Taking this money for fixed deposits or treasury bonds is performance income.

For the market, it is a real benefit.

In addition, the village chief, Boss Yi, stressed at today’s meeting that he also spoke out again: We will further improve the endogenous stabilization mechanism of the capital market, promote the resolution of key and sensitive issues involving capital market expectations, ecology, environment, etc., and make every effort to maintain the smooth operation of the market.

Coordinate epidemic prevention and control and support for economic and social development, comprehensively implement relevant measures to support the revitalization of industrial economic operations and the development of small, medium and micro enterprises, better support the real economy, and help stabilize the macroeconomic market.