The Research Of China's Securities Margin Trading Mechanism

Margin securities margin trading mechanism in a credit transaction (Margin Requirement) mechanism is involved in margin trading of securities margin trading companies lend money to customers for their purchase of listed securities or listed securities for lending the sell and collect the collateral management activities. It includes the brokerage financing for investors, short selling and refinancing, that is, financial institutions broker margin trading activities. Margin trading, the stock market is playing an important basis for its basic functions, it provides not only important risk hedging and risk aversion functions, more importantly, it is an effective and rational only way the price of securities.This paper first describes in detail the basic content of margin trading and margin trading in China's model, the introduction of margin trading mechanism of stock market before the problems in a more detailed analysis, and then pointed out that the introduction of our the importance of margin trading. This article also effects on securities margin trading the dual nature of a careful analysis of the positive aspects of their embodied obtained: First, improve the price formation mechanism, enhance the fairness of stock trading. Second, it can enhanced stock market liquidity and continuity. Third, to provide investors with a new profit model, enhance its ability to avoid investment risk. The negative effect of the credit transaction itself has strong speculative characteristics。if the market is not mature, the market monitoring mechanism is not perfect。Performance in these areas: first, the scale of bank credit expansion, increased financial risks. Second, the effect has implications for help or to increase stock market volatility. Third, encourage an atmosphere of stock market speculation, the breeding behavior of manipulating stock prices, disturb the market order.Later in the article points out this article the status of margin trading in China and its development trend. Finally, the article points out the mechanism of Securities Margin relevant policy recommendations, and learn foreign management experience in mature markets in the proposed mechanism of Securities Margin of related strategies, have certain operational.