Research On Risk Management Of Stock Paid Repurchase

The pledge of the shares held by the shareholders of the listing Corporation is an important means of financing. In 2011,The Shenzhen Stock Exchange and The Shanghai Stock Exchange launched The Stock collateral repo, before this,stock pledge is mainly through the bank’s stock pledge loans and the trust plan to finance. In 2013, the Shanghai stock exchange and China Securities Depository and Clearing Co., Ltd. jointly issued the "stock pledged repo transactions and registration and settlement business approach(Trial), this marks the stock repurchase this innovative business has a system based. The Stock collateral repo has the characteristics of convenient operation, simple operation, high financing efficiency, and lower financing cost, which can be used for a wide range of pledged stock. The Stock collateral repo have a great vogue by Listing Corporation investors, in less than 3 years, the scale of financing is more than two trillion in the stock financing business in the market firmly occupy the first position.The stock collateral repo is mainly through the access system and pledge rate system, as well as early warning line and closing line and other security mechanisms to conduct business risk control. In the second half of 2015, the stock market experienced a substantial adjustment of more than 30%. Stock pledge repo operations in originally strong risk control based on also become at stake. Most of the Pledged Shares at any time be unwinding risk, the stock pledge repo market also has a system of accident risk the possibility of outbreak, had ignored the stock pledge type repurchase risk management becomes very important.Firstly, this paper introduces the background of the risk management of stock pledged repo. Secondly, the business process of stock collateral repo is analyzed and compared with other stock pledge mode. Then summed up the stock collateral repo market risk, pledge rate risk and other important risk points, Combined with the author’s actual work of the stock pledge risk management case analysis. Conclusion and recommendations to further strengthen and perfect the pledge business of stock risk management measures. How to take measures to improve the security of the securities company to ensure that the pledge of shares to perform a series of issues such as a series of issues to be discussed, finally draws the conclusion and puts forward the suggestion to strengthen and perfect the risk management measures of stock pledge business.