The Influence & Risk Control Of Margin Financing For Domestic Brokerage Companies

This thesis elaborates on the content, function and basic mechanism of margin financing, and systematically describe three types of the mechanism and the risk control methods of credit transaction which are popular in overseas countries. The paper presents a critical evaluation of the specific impacts on securities market after introduction of margin financing with empirically analysis. Meanwhile, it analyzes and estimates the market demand of credit transaction by the latest statistics, as well as the influences and effects on domestic brokerage houses and investors.Furthermore, this thesis focuses on putting forward the feasible measures of risk control for domestic brokerage companies, especially in how to use stock index futures to hedge the risk exposures and utilize the margin ratio to adjust the financial leverage.