The Research On The Risk Prevention Of Securities Margin Trading Of Huatai Securities

Since 2010, the margin trading business in China has gained rapid development. Margin trading business has played a positive role in some ways such as improving market trading mechanism, increasing investors’ investment channels, expanding the trading amount of market,increasing the securities’ revenue and expanding the securities’ business types. But it also brings a considerable risk. The securities as one of the most important participators involved in the margin trading business, which risk-control of the margin trading business will be the most important factors of its development. This paper studies Huatai Securities margin trading business on this issue has value for both the theoretical and practical aspects.In this paper, we first introduced the concepts, features and functions of margin trading.And we give a general review of the present situation of margin trading business in China.These are one of the important causes of the risk of the margin trading business. Then we introduce the existing risk management system of Huatai Securities. And thus to identify the potential risk types of Huatai Securities’ margin trading business. And we combined with the front part to discuss the causes and characteristics of these risks. These efforts would provide ideas to the risk control measures of the margin trading business. Finally, on the basis of the previous text, we view of the current situation and problems of Huatai Securities’ risk control system of margin business, and discuss in detail how the risks should be optimally controlled.We present different risk control measures according to the different causes of risk. We trying to provide practical solutions to improve the future of Huatai Securities margin business risk control.