Research On The Development Problem Of Chinese Margin Trading

China A-share market, as an emerging and high-speed developing stock market, has made remarkable achievements in the short time. However features of single means of exchange, lack of suitable hedging instruments and legal financing channels have led to investment needs of investors difficult to be met and increased risks of security transactions damaging legitimate rights and interests of investors. In order to solve these problems, China A-share market formally launched the margin trading system in 2010. After continuous efforts, margin trading in China begins to take shape. However, along with the rapid development, relevant problems are emerging. Especially at the background of turbulent global capital market recently, how to develop margin trading in China in a better way and control risks effectively has strategic significance and time value for China A-share market, even the whole financial market.Under the background of deleveraging in A-share market in 2015 and according to the basic theory of margin trading, this paper analyzes the development of China A-share market margin trading with the latest margin trading transaction data, participants and objects of transaction intensively. It finds that margin trading turnover in China develops rapidly with numerous transaction participants and more comprehensive trade categories. Because of margin trading business starting late and with weak foundation, it presents several disadvantages along with the rapid development, including the design defects of the business system, the unbalanced development structure and lack of effective supervision. On the basis of studying Japan's experiences in the development of the margin trading business in combination with China's current development situation, this paper puts forward to the following suggestions for China margin trading. Firstly, the improvement of the construction of margin trading system. Secondly, the promotion of balanced development of margin trading. Lastly, the strengthening of the supervision of margin trading. In conclusion, this paper intends to find an appropriate path of China margin trading in accordance with present situation.