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Empirical Study Of Margintrading System In China

Posted on:2011-02-26Degree:MasterType:Thesis
Country:ChinaCandidate:H QiangFull Text:PDF
GTID:2189360305979656Subject:Law and economics
Abstract/Summary:PDF Full Text Request
This paper can be divider into five parts except introduction and conclusion.Chapter 1 mainly introduces some concepts of margin trading, including sameness and differences between margin trading and stock index futures. Margin trading law system involves authorization, loan, and guarantee legal nexus and has characters of connecting money market with capital market, double credit, and financial leverage. Further, the practical significance of margin trading is explained.Chapter 2 mainly analyzes the effects of margin trading to the market. Firstly, it demonstrates that margin trading wouldn't amplify the wave of securities market, can enhance the liquidity of market and wouldn't raise the crisis of stock market. Secondly, it demonstrates the effects of margin trading to Taiwan, India, Hong Kong, England and Singapore market. Studies indicate that the negative impacts of margin trading are not so great, and it wouldn't cause the fierce wave of market.Chapter 3 mainly compares some kinds of margin trading system from credit trading pattern, regulation system, qualification of participations and proportion of deposit, including American mode, Japanese mode, Taiwan's mode, and Hong Kong's mode. More, it analyzes the institution of uptick rule, proportion of deposit, and naked short selling, which is useful to the construction of margin trading in China.Chapter 4 makes suggestions on establishing margin trading in China. As our securities market is undeveloped and separated supervision is being implemented, in order to control risks, we should adopt the Japanese mode and establish the securities financial company recently and then transit to the American mode gradually. More, it analyzes the relationship of securities financial company, securities supervision agency, stock exchange, and bank. Lastly, it suggests establishing administration supervision, market supervision, concentrating supervision and self-discipline supervision in order to avoid systemic risk.Chapter 5 mainly addresses the history and status of margin trading legislation and analyzes the negative effects of recent securities market surroundings to implement of margin trading, including that securities companies'financing channel is very narrow, listed companies are not standard, regulation agencies are not harmonious, credit system hasn't established, legislative status is deficient, and so on.Finally, the paper concludes the main standpoints, and then ends.
Keywords/Search Tags:margin trading, concentration credit mode, dispersion credit mode, naked short selling
PDF Full Text Request
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