Refinancing business is a kind of lending business, which refers to the funds and securities provided by banks, funds and insurance companies. As an intermediary, securities companies provide these funds and securities to margin customers. Simply put, refinancing is a lending business. Investors with good credit can borrow from securities companies when their own funds are insufficient. These loans are financed from banks or money markets. This process is refinancing.

This includes capital refinancing and securities refinancing. In the process of refinancing, the second credit relationship between banks and other lenders and securities financial institutions has been formed. Investors use part of their own funds (or securities) and the remaining funds (or securities) borrowed from financial institutions to buy (or sell) a certain securities, and the insufficient part is the advance payment (or securities) borrowed from securities financial institutions.

At the same time, in most cases, the difference paid by securities financial institutions is from bank loans or financing in the money market, which is called "refinancing", including capital refinancing and securities refinancing. Refinancing business has a great impetus to the whole brokerage industry and capital market. After the introduction of refinancing business, the scale of margin financing and securities lending will be greatly improved because brokers can integrate funds or securities into securities finance companies.

Securities Finance Company is a joint stock limited company established with the approval of China Securities Regulatory Commission according to the decision of the State Council. Securities companies do not aim at making profits and perform the following duties:

(1) Providing refinancing services of funds and securities for the refinancing business of securities companies;

(2) Monitoring the operation of the refinancing business of securities companies.

(three) monitoring and analyzing the whole market margin trading business, using market-oriented means to prevent and control risks;

(3) Other duties as determined by the China Securities Regulatory Commission.

1, the premise of securities lending business, at present, domestic securities companies in China can only use their own funds and securities to borrow and sell securities to customers, which not only limits the scale of margin lending, but also makes it difficult to carry out margin lending business. Because short selling securities is generally an operational strategy when the market falls.

2. When the downward trend of the market is obvious, it is also the time when the demand for securities lending business is greatest. At this time, securities companies generally sell stocks to avoid risks or recover lost ground at a low level. The losses avoided or the gains gained in this way are generally far greater than the gains gained by borrowing other people's shares.

3. In addition, the types and quantities of self-operated securities of securities companies may not meet the needs of investors. Moreover, the ownership of securities companies belongs to the core business secrets. Lending shares to others will expose their secrets. Therefore, when there is no securities lending channel, China's securities lending business is likely to fall into a dilemma that is allowed by policies and regulations but cannot be carried out in practice.