The subject matter of margin financing and securities lending refers to the securities that investors can buy with their capital and the securities that securities companies can lend to investors.
the stock exchange shall, in accordance with the principle of strict to wide, from small to large, and gradually expand, and according to the progress of the pilot margin financing and securities lending business, review and select the list of securities within the prescribed scope, and announce it to the market. The subject matter is limited to listed stocks, securities investment funds, bonds and other securities recognized by the stock exchange.
Extended information:
Margin trading risk:
1. Leveraged trading risk: Margin trading has the characteristics of leveraged trading, and investors will face the risk of misjudgment and losses when engaging in margin trading, just like ordinary transactions.
2. Interest charges need to be paid for margin trading. After an investor buys a security by financing, if the price of the security falls, the investor will not only bear the investment loss, but also pay the financing interest.
3. After an investor sells a security by short selling, if the price of the security rises, the investor will not only bear the investment losses caused by the rising price of the security, but also pay the cost of short selling.
Baidu Encyclopedia-Margin Trading
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