Analysis Of Margin Trading Business In Q Sales Department, SWS Securities

As a far-reaching one of the measures in improving the capital market in China, margin trading could not only provide new trading tool for investor, but also help to change the “unilateral market” status to facilitate investors to avoid market risk. The mechanism of margin trading could put more information into the price of the securities and make them reflect the inherent value of the securities more adequately. To some extent, margin trading could mitigate the volatility of stock prices and contribute to the formation of the intrinsic price stability mechanism. In addition, margin trading could magnify the supply and demand of securities and increase trading volume, and consequently make securities trading more active and boost liquidity.SWS Securities got the license for China Securities Regulatory Commission on June 3, 2010, which signifies the official launch of margin trading business. Q sales department of SWS Securities was established in 1994, as one of the nine sales departments that are subordinate to Shenyang branch, and has achieved to a certain position.In this paper, the operating situation of Q sales department was analyzed by calculating the internal data and the data of the overall margin trading business, drawing sheets and figures and other measures. Moreover, using the outcome of the data analysis, four main problems are concluded, from the perspectives of account system, business volume, the quality of the investors, and the capacity of the staffs. Aiming at the difficulties in performing better margin trading business, some specific suggestions and countermeasures are proposed: firstly, in order to reduce the complexity of the account system, the suggestion of combining the credit account and the normal account should be frequently proposed. Moreover, the fees should be lowered gradually, the volumes of underlying securities should be expanded step by step, and the means of refinancing could be used more often. Last but not least, investors should be offered more training, the overall capacity of the staffs still need improving, and the marketing scheme should be improved better.