Under the perfect market system, the credit trading system can play the role of price stabilizer, that is, when excessive speculation or speculation in the market leads to a sharp rise in the price of a stock, investors can sell the stock by short selling, 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.

Effectively ease the pressure on market funds.

There are various financing channels for securities companies, 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.

Stimulate the A-share market to be active

Margin trading is conducive to active market transactions, and the amplification effect of stock funds in the market is also a way to stimulate the active A-share market. Wu Chunlong and Chen Xiangsheng, securities analysts of CITIC Jiantou Securities Co., Ltd., believe that the margin trading business is conducive to increasing the liquidity of the stock market.

Improve the living environment of securities companies

Margin business 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.

Establishment of multi-level securities market

Margin trading system 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.