An Empirical Study On The Influencing Factors Of The Degree Of Imbalance Of Financing Transactions And Short Sale

Before 2010,China's stock market banned short-selling transactions,and unilateral financing transactions were not conducive to the healthy development of the capital market.Therefore,the regulatory layer judged the situation and officially lifted the short-selling constraint in March 2010.As a result,China's stock market has embarked on a parallel development path of margin financing and securities lending.Since the launch of the refinancing business,especially with the increase in the number of underlying stocks of margin financing and securities lending,the scale of margin financing and securities lending has achieved great development.However,compared with the mature stock market in western countries,the development of margin financing and securities lending business in China's stock market is still in its infancy.The gap between the scale of securities lending transactions and the scale of financing transactions is huge,showing a serious imbalance.Based on the data of margin financing and securities lending transactions in the past three years,this paper used the panel data model to conduct single factor regression analysis and multi-factor regression analysis respectively,and examined the influencing factors of the margin of margin financing and securities lending.Firstly,the article analyzed the relevant theoretical research on margin financing and securities lending on domestic and foreign actual data in China,and described the current situation of imbalance in margin trading,and proposed the research hypothesis to explain the degree of imbalance.Then,16 indicators including liquidity,momentum effect,institutional shareholding ratio,beta value,valuation index,company financial indicators and other comprehensive factors are used as empirical factors to study the factors of the imbalance of margin financing and securities lending.Finally,I analysised the factors affecting the imbalance of margin financing and securities lending are how to affect financing transactions and securities lending transactions from the perspective of financing transactions and securities lending transactions.The study found that stock liquidity,momentum effect,the beta value and the shareholding ratio of institutional investors are important factors affecting the imbalance of margin financing and securities lending.In addition,I also found that the factors affecting the financing transactions and securities trading transactions aredifferent.Among them,liquidity have a positive impact on both financing transactions and securities lending transactions,but it has a greater impact on financing transactions,which in turn increases the imbalance of margin financing and securities lending.Momentum effect and beta values of the underlying stocks have a positive impact on the financing transactions and have a negative impact on the securities trading,which in turn exacerbates the imbalance of margin financing and securities lending.The shareholding ratio of institutional investors has a negative impact on financing transactions and securities lending transactions,but it has a greater impact on securities lending transactions,which in turn has a positive impact on the imbalance of margin trading.Based on the research in this paper,I suggested that the regulatory authorities should continue to expand the scope of the underlying shares of margin financing and securities lending transactions,reduce the institutional restrictions on securities lending transactions,create a good market atmosphere,and guide investors to rational investment.