Study On Risk And Its Strategy Of Securities Margin Trading Business In Refinancing Mode Of China

With the increasing demand for margin trading business from our investors, margin trading business is gradually become a new and essential trading product in China’s capital market, and has achieved rapid development since its opening more than two years ago, which will effectively carry forward the process to improve the capital market system. The margin business develops rapidly, at the same time, the contradiction,which comes from investors’ growing demand for margin trading business and the shortage in their own funds and securities for the business in Securities Companies,becomes increasingly prominent. Therefore, the opening of refinancing business has its necessity,which can solve this problem reasonably and effectively.However, with many forms in refinancing mode of developed markets at home and abroad, which mode is suitable for the development of the margin trading business in China? How to circumvent the risks of margin trading business in refinancing mode? These issues become particularly important, thus, in order to effectively promote the margin trading business in China to develop rapidly, healthy and sustainablely, research on relative topics of risk management on margin business in refinancing mode has very important theoretical value and practical significance.After a lot of reference to domestic and foreign research literatures and combining with China’s specific national conditions, this thesis analyzes and compares the refinancing models in developed markets at home and abroad, and raises the refinancing model for margin trading business in China, then analyzes possible risks of margin trading business in the refinancing mode,and puts forward countermeasures and measures for these potential risk factors. Text structure is divided into seven chapters. The first chapter is an introduction.In the second chapter,the author introduces the overview of refinancing business and margin trading business, In Chapter Ⅲ, elaborate our selected refinancing mode,and analyze margin trading business in this pattern in China. In the fourth chapter, through the analysis of our refinancing mode, bring forward these risk factors from margin trading business in this pattern.The fifth chapter,the author attempts to research risk control of margin trading business in refinancing mode. Chapter VI, select a real case of a first-class domestic brokerages A’s research risk prevention of margin trading business in refinancing mode. Chapter7, the author refines conclutions of the whole research on this article and makes a further outlook on this study.Refinancing business in China’s capital market is in its infancy, and the advantages and disadvantages of both sides of the factors will come along with the process of its implementation, therefore,it is particularly important to how to try to fully take advantage of its favorable side to make refinancing business system perfect under the condition of avoiding the unfavorable factors.lt will even more effectively give impetus to the development of the margin trading business in China and contribute to the maturation of China’s capital market system only if it is in the refinancing mode suitable for China’s specific national conditions. Therefore, based on extensive literature and comprehensive analysis of multiple factors such as specific capital market situation, comes the conclusion:highly concentrated pattern of specialization fits refinancing business of securities company at the present stage of our country, and recommendations can be used such as:to further improve and perfect the relevant laws and regulations, building different margin system in refinancing business, perfecting the risk management system of refinancing business, the establishment of risk reporting system, perfecting the the rotation system of main leaders in security and finance company, establishing risk management index in refinancing business, to strengthen the small investor education, improve the prevention measures of insider trading and "Rent-seeking", the establishment of the "mutual protection fund" organization among the parties involved,which will circumvent risk of margin trading business in securities companies in the highly specialized refinancing mode.