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Selection And Development: Margin Trading Regulation In China's Capital Market

Posted on:2009-11-27Degree:DoctorType:Dissertation
Country:ChinaCandidate:S ChengFull Text:PDF
GTID:1119360242487873Subject:Economic Law
Abstract/Summary:PDF Full Text Request
Long time after the establishment of China's capital market, the securitiestrading in China is limited to spot trading, while margin trading is regarded asa forbidden zone due to comparatively higher risk and more complexity. Tenyears'of development makes China's capital market an increasingly maturemarket with improved legal system, trading regulation and supervisionmechanism. Take this precondition into consideration, to meet with the needof short-mechanism and trading capital, establishment of margin tradingsystem was added to the schedule. In China's capital market, margin tradingsystem experienced a way of"standardization first, implementation second".In October 2005, the emendation of"Securities Law of PRC"cleaned off thesystematic obstacles of margin trading system. On June 30, 2006, ChinaSecurities Regulatory Commission framed"the experimental regulations ofmargin trading businesses for securities companies", which, for the first time inhistory, provided a series of specialized and overall clarification to regulatemargin trading.The process of margin trading system in China, from introduction, draft toexecution, is no less than a complicated systematic project, which needsgreat courage and wisdom of researchers and executants. The writer wouldlike to probe into China's margin trading system in the following aspects:The first chapter"Fundamental Theory of Margin Trading"mainly discussesthe characteristics, definition and essence of China's margin trading system,and clarifies the benefits brought forwarded by margin trading system for theinterest of stock market, investors, securities companies, banks andsupervisors respectively. Meanwhile, the writer compares margin trading system to adjacent securities spot trading, time-bargain, over-draft trading,third party supervision trading, impawn trading, etc. Such comparison not onlydeepens our understanding of the essence of margin trading, but also setsforth that the introduction of margin trading system into China is a necessaryand irreplaceable process for China's capital market.The second chapter"The Development of Margin Trading System and theEnlightenment to China"mainly introduces how margin system develops in thecapital markets of USA, Japan and China Taiwan. It is clear to see that marginsystem experiences diversified development modes in different capitalmarkets. Therefore, well-grounded understanding of the current situation ofChina's capital market is crucial to make scientific selection of margin tradingmode in our country.The third chapter"Comparison of Margin Trading Modes and China'sSelection", taking"credit"as a main clue, divides margin trading modes intomarket mode, professional mode and compatible mode. Based on suchclarification, the writer takes a detailed argumentation of the background forChina to select margin trading mode, and furthers his viewpoints with anevaluation of the practice of such selection.The forth chapter"Analysis of the Access System and Legal Relation ofMargin Trading"discusses main-body system of margin trading, which iscrucial for margin trading system study. Margin trading process involves manymain-bodies, among which investors and securities companies have mostunique and complicated main-body system. In this chapter, the writer takes"the experimental regulations of margin trading businesses for securitiescompanies"as a chief source, briefly analyzes the market access problem ofmain bodies, legal position of relevant main body, and legal relations (rights &duties) of main bodies in margin trading. The fifth chapter"Study of Legal Problems of Margin Trading Approach"focuses on the main steps of China's margin trading operation, includingmargin trading contract and risk disclosure statement, system of account,mark-to-market, notice and compulsory closing-out, beneficial ownership ofguaranteed securities, etc. Margin trading operation system aims to solve therelation problem of clients and securities companies in margin tradingbusiness. Each step shall abide by legal logic and fully consider the legalrelation between clients and securities companies.The sixth chapter"Study of the Risk Management of China's Margin TradingSystem"focuses on the potential risks of margin trading and correspondingmanagement system. The risk management system of margin trading shouldinclude two parts: internal risk management and external risk management ofsecurities companies. The writer takes a detailed study of the both sides.The seventh chapter"Review and Betterment of China's Margin TradingSystem"indicates that margin trading business is after all a newcomer toChina's stock market, with large space for improvement. And then, the writertakes into account the rationality and feasibility of the current system for areview, and proposes some suggestion to perfect the margin trading system inChina.
Keywords/Search Tags:Capital Market, Margin Trading, Trading Regulation
PDF Full Text Request
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