Hello, refinancing business refers to the business activities that securities finance companies use their own funds and securities, or other funds and securities raised through legal means, and when their own funds and securities are insufficient, the securities companies deposit corresponding deposits. Refinancing business includes refinancing business and securities lending business. Refinancing business means that securities finance companies lend their own funds or funds raised by issuing bonds and other ways permitted by the CSRC to securities companies, so that they can have a stable source of funds to carry out financing business with customers. Securities lending business means that securities finance companies borrow their own stocks or negotiable securities from lenders who hold a large number of stocks, and then finance them to securities companies, so that they have enough stocks to carry out securities lending business to customers. The common sources of funds and securities for securities finance companies are banks, insurance companies, shareholders of listed companies, securities investment funds, social security funds, securities companies and other institutions.

Impact of refinancing:

(a) to meet the capital and securities needs of the two businesses.

For investors, refinancing better meets the needs of investors for two financing businesses. At the initial stage of the pilot project of opening up the two financial services, securities companies can only use their own funds or securities to carry out the two financial services, which leads to two major problems in the market: first, the number of securities sources is insufficient, and the total scale of market margin financing and securities lending is limited; The other is the shortage of securities sources, which often leads to the situation that customers can't borrow the securities they need, but the securities they don't need are idle. Refinancing business can greatly alleviate the pressure of capital and securities sources when securities companies carry out the two financing business, meet the needs of investors in many aspects, and expand the balance of margin financing and securities lending in the market.

(b) Increase the income of exchange-traded funds and other institutions.

For institutions that hold a large number of stocks for a long time, they can obtain additional income by lending their own stocks at a certain interest rate. For example, ETF and other types of index funds, these funds with passive tracking index investment strategy have a large number of long-term deposits, and lending their long-term fixed share can become a stable source of income for the fund. At present, the integration rate of refinancing and securities lending varies according to the term, which is about 1.6%-2%. Based on the upper limit of 30% of ETF loanable position stipulated in the Guidelines, the profit brought by lending business to ETF is about 0.5%, which can cover part of its management expenses to a great extent.

(c) Enrich investors' investment strategies and risk management tools to stabilize the market.

For the market, the large amount of funds and securities brought by refinancing can greatly enrich investors' investment strategies and risk management means, promote the diversified development of the market, enhance the stability of the market, curb speculation, and make the market price discovery function better play. For example, on the first trading day in science and technology innovation board, 23 of the 25 stocks triggered at least one temporary suspension, with an average increase or decrease of 139.55%. However, only on the fourth trading day, the stocks that did not trigger the temporary suspension of trading in science and technology innovation board all day rose or fell by an average of 5.48%. Science and technology innovation board can slow down the market fluctuation so quickly without the function of refinancing.

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