Margin Trading Influence On Chinese Security Company

The securities margin trading business is an important part of the securities market and plays an important role in the development of the securities market.On March 31th2010,China launched securities margin trading formally,which has ended more than 20 years of "single market" times.It is a milestone in the history of China's securities market significance.In the past sixyears,the business participation has been steadily improved,and the balance of margin has increased by more than 6,000 times compared with the initial period.The business rules are generally accepted by the market.The introduction of the securities margin trading business has played an important role in the increase of the business variety and the improvement of the income composition of the securities companies,which is of great significance to the business transformation of the securities companies.In this report,the qualitative analysis and empirical research of the combination of China's top ten securities companies,one of CGS(China Galaxy Securities),for example,analysis of the securities companies to carry out securities margin trading business,the customer structure,the number of securities transactions and business income structure Aspects of the changes.This repport first elaborates the literature on securities margin trading in China and abroad.Secondly elaborates the present situation of China's margin trading business and analyzes the opportunities and challenges of the margin trading business.Thirdly,this paper takes CGS as an example to analyze the impact of margin trading on CGS's securities from the aspects of customer structure,securities trading volume and business income.Through the VAR model,the paper analyzes the mutual influence of the margin trading volume,margin balance and market return rate to find the relationship between the three.CGS Securities margin trading business data show that:to carry out securities margin trading business,from the securities trading volume and margin balance in two aspects,an increase of securities companies trading commission income and interest income,thereby increasing the overall business income,and financing The proportion of business receipts to brokerage revenue increased year by year.Through empirical research,it is concluded that the trading volume of margin trading is affected by the volatility of market returns in the short term,while the balance of margin is affected by market volatility.Finally,combined with the actual situation of CGS,this report puts forward the following policies:Firstly,to maintain a good margin of margin customers as the core of high-end customer groups,establish a correct investment philosophy,enhance the overall level of service;the secondly is to control the risk,and strive to transform the business structure;Finally,to speed up the Internet financial platform and light business department to build,with a variety of product structure,innovative business model.