Risk Management Of Margin Trading Business In China Merchants Security

China's securities market financing and securities lending business started late,and the development process has been quite tortuous.Since March 2010,the margin financing and securities lending business has been officially launched.In recent years,the development has begun to take shape,which has greatly promoted the innovation of China's financial industry and improved market flow.Sexuality is conducive to the realization of the intrinsic value of stocks and expands the scale of transactions in the securities market.However,the margin financing and securities lending business is still in the initial stage of development in China,the market trading mechanism is not sound enough,and there are many differences between credit transactions and ordinary transactions.For example,the leverage effect amplifies the risks of securities companies and investors,and short-term transactions may bring to the market.Helping ups and downs,limited resources bring liquidity risks to securities companies,and so on.If the risk of margin finances and securities lending business cannot be effectively managed,it will inevitably bring about great economic losses and legal risks,which will most likely trigger a chain reaction,which will affect the healthy and sustainable development of the entire securities market.As a listed securities company,China Merchants Securities is at the leading level in the industry.While pursuing the rapid development of the margin financing and securities lending business,China Merchants Securities should further develop the risk management system for margin financing and securities lending,form a more complete risk management system,improve the company's ability to resist risks,and promote the company's long-term development.This paper analyzes the current situation of risk management of China Merchants Securities' margin financing and securities lending business,and discusses the problems existing in the management of China Merchants Securities' margin financing and securities lending business,and proposes corresponding optimization plans.This will provide experience for the risk management of margin financing and securities lending in the entire securities market.Through analysis,it is found that the existing risk management organization system of China Merchants Securities mainly includes five levels including the board of directors,senior management and risk management committee,supervisory board,risk management related functional departments,other departments,branches and wholly-owned subsidiaries.The risks faced by China Merchants Securities' margin financing and securities lending business mainly include market risk,business management risk,credit risk and liquidity risk.China Merchants Securities has problems in risk management such as risk management objectives,risk management organization structure and risk identification and early warning capabilities.Therefore,this paper proposes that China Merchants Securities should construct a risk management system for margin financing and securities lending business from two aspects: qualification and business process.Among them,the qualification risk management system includes business outlet qualification and investor qualification;business process risk management system includes management of subject matter securities and collateral,management of customer credit accounts,management of business contracts and investment The four aspects of credit management.China Merchants Securities can optimize the risk management system for margin financing and securities lending business from the aspects of credit management risk system,market risk management system,operational risk management system and risk reporting system.The construction of these margin financing and securities management systems and the optimization of risk management systems will enable China Merchants Securities to achieve a stable margin financing and securities lending business.