| Securities Margin Trading means that the securities company lends money to customers for buying stocks or lends them the stocks for selling through collecting collateral. With the rapid development of Chinese securities market, high level investors and professional brokers surge in the stock market, so the unilateral market can not satisfy the need of investors and brokers any more. Especially in the financial crisis of 2008, the stock market slump, and the securities investors lost millions. In this context, investors hope urgently to find a new profit model by Securities Margin Trading. Meanwhile, Conducting Margin Trading is the signature of Chinese stock market getting mature, and also means Chinese stock market be in line with international practice.In the early 2005, the legal restriction about Securities Margin Trading had been canceled, and the official Securities Margin Trading pilot business was began in 2008. When the stock market is in boom, the investors can choose good news to achieve more profit, and when the stock market is in downturn investors can choose bad news to avoid risk. At the same time, we should also realize the leverage of Securities Margin Trading, which is when making profit it can magnify the profit and when losses it can also magnify the losses. That is what we called the high profits are accompanied with high risk. Moreover, with no consistence with the stock market prosperity, the investors are mainly retail investors, and the num of institutional investors is small. There are many short-term investors, which have high speculation. Facing the high risk and high speculation of Securities Margin Trading, we should manage the subject, process and object strictly in the beginning of Securities Margin Trading.At present, the normative document of our country's Margin Trading has set the standard of the subject qualification, the underlying securities scope, and the margin ratio. But in the opinion of this paper, it is difficult to get the qualification of Margin Trading. If individual investors want to have the qualification, it is not only needing to open the "six accounts" but also having to have an account in a stock company for 18 months. Also, the account assets should be above 500,000￥and have at least 5 transactions in 6 months. It is too strict to get the qualification for the individual investors. The requirements for the institutional investors are relatively loose, which require 5 million￥registered capital. For the underdeveloped institutional investors of our country, it is also very strict. Besides, there are only 90 stocks Margin Trading available, and the margin is so high that normal investors could not afford it. The supervision system is not clear either."Learning from others, may attack jade". The development and perfection of a system should not only summarize the experience of their own development, but also use the foreign experience for reference. Comparison with the United States, Japan, Taiwan margin business system, there are some differences, such as the supervision strength, the subject qualification, and the object qualification etc. Taiwan is the strictest one in subject qualification, but it just requires only 6 months of common stock account opening period. Besides, it does not require the total assets of the stock account, and it associates the transaction amount with the margin trading amount.The perfection of our country's margin business admittance supervision system requires relaxing the condition of the subject qualification, enlarging mark securities range, lowering the margin standard, and perfecting the supervision system. Strictly speaking, Margin business is a double-edged sword. It could bring benefits to investors, but also could bring losses to investors, which requires strict supervision when conducting the Margin business. The first step for the supervision system is admittance, so it is important to perfect the admittance system. Though there is great risk in Margin business, but it should not be refused, or restricted too much. |
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