The Research Of Legal Issues In Stock Financing

During the first half of 2015, China’s securities market has experienced huge ups and downs, resulting in a large number of investors lost money and almost caused financial crisis. The public thinks that the crisis should be blame to the capital finance business, especially the off-match capital financing business because of the excessive leverage and out of the supervision of CSRC, producing a huge risk, and ultimately jeopardize the normal trading in securities market. Stock financing business includes margin trading business and off-match capital business. Compared with other nations, the margin trading business started late in our country, especially in the field of computer distribution system, it is a new type of off-match business rise in the past two years. This article first discusses the concept and nature of the stock financing business, then the definition, characteristics, potential risks of the stock financing business. Then the article analyzes five types the stock finance business, they are capital finance in margin trading financing business, stock benefit exchange, umbrella trust, stock option incentive plan, P2 P internet capital financing and emphasize the characteristic judgment of the off-match capital financing contract in legal practice area. After that, the article then appropriate the experience of the business developed in other countries. Furthermore, the paper proposes 3 suggestions. The first suggestion is to make a sound supervision system, like institution-supervision system. Then, Admitting the legality of off-match capitalfinancing business. The final suggestion is that the government should pay more attention to the reality of the investors’ securities account.On the research ideas, this paper first talks the essential characteristics of the stock financing business, and discusses the internal potential legal risks of the margin trading business of the securities companies and the off-match capital financing business. And then through the comparison theory, the paper introduces the relevant laws and regulations in the United States, Japan and China’s Taiwan region for margin trading business model, and made a brief assumption if the rules applied in China. At the same time, this paper also introduces the relevant provisions of the United States on the off-match capital financing business, which leads to the suggestions to strengthen the development of off-match capital financing business, as well as the reforming the current financial regulatory framework and improving the supervision of the securities accounts.The innovation points of this paper are as follows. First, the paper systematically reviews the whole process of the stock crisis occurred in the first half year of 2015 and roundly discussed the types and legal risks of margin trading financing and off-match capital financing business together. Second, the paper generalizes the United States, Japanese relevant legal rules in stock financing business fields. Third, the paper proposes some practical advices according to the development of stock financing business according in China.The paper is divided into four chapters.The first chapter, the summarization of stock financing business. This chapter briefly introduces the process of the stock crisis happened in 2015. Then, the chapter make a definition of stock financing business. After that, the chapter introduces the characters and closely related business of the stock financing business. Finally, the chapter introduces the importance value and potential risks of the stock financing business in promoting the development of China’s capital market.The second chapter, the analysis of the basic modules and supervision mode of stock financing business. This chapter divides stock financing business into margin trading financing business and off-match financing business by the supervisioncondition. Then, the chapter introduces the specific express forms of them. Finally, the chapter analyses the supervision regulation frame of stock financing business.The third chapter, the off-board experiences of the stock financing business. This chapter has two parts. The first part briefly introduces margin trading business in the United States, Japan and Chinese Taiwan. The Second Part generalizes the off-match capital financing business and regulations and laws in the United States.The last chapter, the perfection of China’s stock financing business. This chapter proposes some suggestions on our nation’s capital financing businesses’ problems. The suggestions include reforming the present securities supervision mode, from the mode that supervising different parts by institutions to supervising by different businesses. Then, the off-match capital financing business should not be totally forbidden. Last suggestion, the securities accounts shall fully use real name of the client.