Stock Allocation Needs To Be Improved And Regulatory Gaps Need To Be Cautious.

With the popularity of the stock market, A trading volume has exceeded trillion.

Behind the days of trading, stock allocation has suddenly become a new force.

There are nearly 80 thousand private companies in China, with nearly 100 employees.

Recently, the P2P platform has also launched the capital allocation and stock trading business. The stock is allocated to capital and put on the outer garment of the Internet finance.

Because there is no clear regulation and rules, stock allocation has been in a barbarous growth state for many years, and in the gray area of law, it relies on enterprise integrity and industry self-discipline.

The stock allocation industry can not be short of supervision over a long period of time. Relevant departments should issue regulatory opinions after conducting industry research.

Companies engaged in stock distribution business are mostly under the guise of investment consultation and asset management.

Unlike other leveraged financing, stock allocation has a large leverage ratio, typically around 1:3, and some even reach 1:5.

The stock allocation leverage has exceeded the margin trading and the umbrella trust.

The funds of the financing party must be allocated to the bank account provided by the allocation company, and the password of the stock account shall also be told to the company.

The former prevents the borrower from rolling money back, and the latter prevents excessive losses in stock accounts. When the margin loss reaches a set warning line, it will force the bank to liquidate.

In the past, mainly engaged in stock allocation business were underground banks and private lending companies, which were relatively low-key and dominated by offline pactions.

Nowadays, more and more P2P companies are entering the stock distribution business in a high-profile manner, promoting the Internet on the Internet and seeking sunshine.

Its background is that many P2P platforms are in the line of profit and loss.

A group of P2P platforms are seeing the hot stock market since July before they set foot in the stock distribution business, trying to seize this opportunity to make quick money.

At the same time, there are several risks in the stock allocation industry, such as law and investment.

First, high leverage risk.

Stock allocation leverage ratio is too high.

More casual, some even more than 10 times the principal, high leverage has unavoidable investment risks.

If investors lack experience or experience the black swan event, they will easily be forced to liquidate or lose their blood.

Second, the risk of platform running.

In order to strengthen risk management and control, some capital allocation companies seek to cooperate with some trust companies in order to promote the normalization of capital allocation market.

Many stock allocation companies say that capital accounts are hosted by third parties, but even if they are trusteeship, the platform can also embezzle funds through virtual dummy.

Because the capital allocation company has control over the capital account, the pfer of funds is very convenient.

In May this year, a platform called "shareholders loan" was launched, which was the main mode of stock allocation.

Recently, Sheng Cai net was traced to the fact that the difficult boss was lost, and the main business was stock futures.

Third, the risk of usury.

The minimum interest charged by a general stock allocation company is two monthly interest rates, that is, the annual interest rate of the fund is 24%. However, many companies charge an interest rate of 4 points.

For interest, many capital allocation companies are called management fees, but they are actually playing word games.

Once agreed lending

It is 4 times higher than the benchmark interest rate of the same period in the same period of the bank.

Fourthly,

There are legal risks.

In July 2011, the SFC officially issued the notice on guarding against future risks of capital allocation business, requiring Futures Company not to participate in capital allocation business.

Therefore, futures allocation is clearly prohibited, but there is no relevant requirement for stock allocation.

In order to avoid the risk of illegal fund-raising, stock allocation companies generally emphasize that it is not a capital company that signs an agreement with the investors in the P2P mode, but a natural person. The contracts signed by both sides belong to private lending and are protected by national laws.

But stock allocation is essentially private lending. As the stock market is becoming more and more popular and capital demand is strong, how to develop and regulate this industry is a real problem that regulators can not avoid.