How Can Investors Enter The Threshold Of Margin Trading?

Although the recent performance of the stock market is sluggish, it is difficult to block investors' attention to margin trading.

The new business, which has been clearly launched by regulators in the near future, is not only another major stimulus, but also makes it possible for domestic investors to conduct bilateral operations in the stock market.

Because the margin trading is the business between investors and securities companies, and the development mode of first trial and then spread out, it is a common concern of many investors whether or not their own securities companies can provide the business themselves.

In this regard, the securities industry analysts believe that even after the full spread of margin trading, the Liaoning region can provide the business of the securities company's sales department will not be too much.

Margin trading allows investors to make money when the stock market falls, but the operational risk has also been magnified. Individual investors should consider carefully whether to participate in the business.

If the CSRC announces that it will launch the pilot scheme for margin trading in the near future, it is widely believed that there will be at least one to two months to go from the real operation of the business to.

"From the regulatory level, there are at least three steps to go.

First, the pilot securities companies need to be accredited before they can be confirmed. Two is the promulgation of the detailed rules for the implementation of the business, and the three is the announcement of the scope of the pilot securities.

A supervisor told a reporter: "during the pilot period, Liaoning can provide margin business with few business departments, and investors who will participate in the business will be very limited."

For the margin trading business initiated by the SFC, the company should follow the trend of "pilot first and gradually push away". The industry generally believes that it will take at least four to five months from the pilot to the full deployment.

Then, after the pilot period, does it mean that more securities companies get business qualification, and most investors can participate in margin trading?

"From the perspective of Liaoning, after the end of the pilot period, there may not be many business departments of securities companies that can provide margin trading," he said.

According to the reporter, first of all, according to the "pilot management measures for margin trading and margin trading of securities companies" issued in 2006, the securities company must fulfill the business of brokerage business for 3 years, and has been recognized as an innovative securities company. The net assets in recent 6 months are all above 1 billion 200 million yuan, which means that some small securities companies are excluded from the threshold.

Secondly, many people in the industry also believe that as the margin trading amplifies the risk of paction, the business is bound to strictly control risk, so the end of the trial will not mean that the business will immediately spread out in full, but gradually spread out.

In this process, although many securities companies with wide network layout and large net assets have reached the hard targets mentioned earlier, whether their assets are of high quality and many outlets, but whether the layout is reasonable or not will be their "soft indicators" for obtaining business qualifications.

And for those securities companies that are eligible for margin trading, their outlets may not provide margin trading services. According to the characteristics of regional distribution, it is probably the final result that selectively designate some outlets to provide the business.

Therefore, from the above point of view, the end of the margin test does not mean that most investors can participate in it.

If the securities companies belong to them do not have the qualification of margin trading, is it feasible for investors to switch to those qualified securities companies?

The industry insiders remind investors that although the implementation details of margin trading have not yet been promulgated, from the international experience, in order to prevent customers from "moving" to switch to the voucher business and to other non pilot brokerages, the investors usually engage in some basic requirements such as the shortest opening time limit for investors involved in margin trading, for example, the customer opening time can not be less than 18 months or even longer, so as to ensure that the pilot brokers try to provide this business to the existing customers.

Investors are also required to obtain the qualifications. The general investors have basically understood that the actual operation process will be based on the rules to be issued in the near future. However, the regulations on how to manage the securities lending and margin business of securities companies have already been clear about the entry threshold and investment mode of investors.

According to understanding, according to the regulations already issued, investors must first know that investors must first qualify for margin trading.

Because margin trading is a business that securities companies lend money to clients to buy securities or lend securities to sell and collect collateral. Therefore, only through investors in securities credit investigation can they participate in margin trading.

And customers can only sign a margin trading contract with a securities company, and merge funds and securities into a securities company.

In accordance with the provisions of the pilot management method, a securities company must handle customer's credit investigation before it financed or financed the loan to the customer, knowing its identity, property and income status, securities investment experience and risk preference, and recording and preserving it in written and electronic way.

Securities companies shall not finance or finance securities pactions that fail to provide relevant information in accordance with the requirements, less than half a year when the broker is engaged in securities trading, and the paction settlement funds are not included in the third party's custody, lack of experience in securities investment, lack of risk taking ability or record of major breach of contract.

At the same time, margin trading accounts must be real name system.

A securities company shall sign a contract for financing and margin trading which is included in the necessary clauses stipulated by the Securities Association of China before making a loan to the client, and clearly stipulates the ways of calculating the amount, time limit, interest rate (interest rate) and interest (expense) of the financing and margin trading, the margin ratio, the proportion of guaranty guarantee, the type and conversion rate of the securities that can be filled to the margin, the scope of the secured creditor's right, the way to notify the additional margin, the time limit for the additional margin, the way for the customer to pay off the debt and the disposition rights of the securities company to the guaranty, and the handling of the rights and interests of the securities sold and the securities sold by the securities.

At the same time, margin ratio is related to the leverage of margin trading.

According to the implementation rules issued by the Shanghai and Shenzhen Stock Exchange in 2006, when investors buy securities, the margin ratio of financing should not be less than 50%.

Similarly, when margin trading is sold, the margin margin ratio must not be less than 50%.

According to the 50% calculation, assuming that investors are financing 1 million yuan for securities companies, they need to provide a margin of 500 thousand yuan, 500 thousand yuan can do 1 million 500 thousand yuan trading, and the capital will enlarge 3 times.

Although the final margin ratio coefficient needs to be clearly defined in the new implementation rules to be issued, it is certain that the proportion of margin will increase moderately in the pilot phase.

After raising the ratio, the leverage of margin trading will not be obvious.

In addition, we need to remind that in addition to the initial margin, there is a certain margin maintenance ratio in margin trading, which is an important means for securities companies to control risks.

The margin trading has also enlarged the profit margin, and has also enlarged the risk. The start of the A share market has entered the bilateral trade.

When the stock market goes up, it leverages the scale of the funds that they buy, and when they fall, they buy high and buy low and get the difference price. Therefore, investors from different roads give great interest to margin trading.

However, the industry pointed out that margin trading can not only enlarge profits, but also magnify risks and losses. Individual investors should be especially cautious.

In accordance with relevant regulations, in order to control credit risks, securities companies and investors should not exceed 6 months in terms of margin.

This regulation is also significantly different from the general stock investment, and has a higher demand for the trend judgement ability of investors.

Therefore, whether in the stock market rising stage or in the fall stage, once encountering short-term and intense market fluctuations, margin trading will be difficult to grasp, margin will be threatened, investors may be faced with the dilemma of having to liquidate, thus failing to achieve the expected investment target.

If the performance of the stock market is completely deviated from the expectations of investors, the risk of margin trading will be significantly greater than that of ordinary stock investment.

Under such circumstances, individual investors who are at a disadvantage in the environment of asymmetric information should obviously consider participating in the business.

In addition, the interest cost of margin trading is also worth investors' attention.

Because in the financing operation, investors need to pay interest costs higher than bank loan interest.

Despite the fact that individuals are directly involved in margin trading is not optimistic about the industry, some people believe that with the development of margin trading, the distance between individual investors and margin trading will be narrowed if the future fund can be widely involved.

The securities and Futures Commission has not announced any information on whether the fund can participate in margin trading, whether closed-end funds, ETF funds and LOF funds can become the targets of margin trading.

However, the previous implementation rules have made clear provisions for underlying securities issued by margin buying or margin trading: the underlying securities that can be sold as a margin for buying or selling securities can be stock, securities investment funds, bonds, etc., which are in conformity with the relevant provisions.

In the long run, the domestic margin trading is developing smoothly, and the fund products can still enter the scope of margin financing.

Us margin trading data show that in the United States, almost all types of securities trading can enter the margin.

The T rules of securities credit pactions in the United States stipulate that they can be used as securities for credit pactions, including securities listed on national stock exchanges, marketable securities, and investment trust funds registered under the investment company act 1940.

If the fund can serve as the target of margin trading, it will help to further activate the market of listed trading funds.

For closed-end funds, although the target can not eliminate the discount, it will reduce the discount rate and make the two tier market better reflect the value of the fund.