Development Issues Of Margin Business:Evidence From G Securities Case

After decade’s development and transportation, Chine’s securities market is getting mature and investors are more rational. At this point, Margin trading business not only meets regulators’requirements on establishing a multi-level market, but also fulfills investors’ various investment demand. For securities companies, vigorously launching margin business will beneficial to change securities companies’income structure which now largely rely on brokerage commissions. It can also provides Securities companies management fees, transaction commissions which enlarged with the development of Margin business, and other interest income from such transactions. Therefore, understanding how to better operate margin trading business is necessary and research significant.This paper using the evidences from G securities related Margin business, discussing the positive meaning of the margin trading business. Thoroughly analyzing the decision-making process, authorization systems and other related procedure of G Securities to find out exist issues it faces; such as lack of capital, market competition, unevenly development, short of innovation and imperfect systems of management and risk controlling. By comparing with the more mature and perfect procedure that foreign companies used and combining with China’s situation to providing related advices on Margin Business and pointing a way for securities companies. For instance, this paper aims to provide solutions of extending fund and client resource, improving innovation, marking and service, and perfecting institution. The innovation and highlight of this thesis are combining my own work, basing on the actual situation of securities companies, integrating theory with practice, and providing feasible solutions on Margin Business operation.