Research On Risk Management Of CITIC Securities

With the rapid growth of China’s economy, as well as the development of capital market, China’s securities market innovation business continues to develop, margin trading business emerged as the times required. CITIC Securities became China’s first batch of pilot securities lending business pilot in 2010. The size of Securities margin trading in particular the financing business continues to grow in 2014 due to the stock market from bear market to bull market. China’s two financial services, Since the end of 2014, China’s financing balance exceeded one trillion yuan. After that, with the stock market continued to stronger, China’s two financial balance hit a record high of 2.21 trillion yuan in June 2015. As two financial business scale rise, it improves the business income of CITIC securities. However, risk exits with the benefit. After Shanghai Composite Index hit 5178 points in June 2015. China’s stock market faces an unprecedented liquidity risk in the next three months. Therefore, Research on risk management of securities company margin trading in the perspective of CITIC Securities has some theoretical and practical significance in the back of the rapid development of China’s capital market innovation.In this paper, we take the risk of margin trading and securities lending business as the research object, through the literature review of the way, the conclusions of previous studies were summarized and analyzed. On the basis of this, the second chapter introduces the theory of margin trading and risk management, which provides a good theoretical basis for the following analysis. The third chapter analyzes the current situation of the development of the margin trading and securities lending business in China, and explores the related business risks, which provides a way for the risk assessment of securities margin trading and securities lending business. In the fourth chapter, through the fuzzy comprehensive evaluation method, the risk of margin trading and securities lending business of CITIC Securities is quantitatively evaluated. In the fifth chapter, the paper proposes the suggestion on the risk management of the margin trading business of CITIC Securities in order to guarantee the smooth development of the margin trading business.The sixth chapter points out the direction of the two financial risks in the future.