Analysts: Margin Trading From T+0 To T+1 Shorting Will Weaken.

The Shanghai and Shenzhen Stock Exchange announced that the margin trading will be changed from T+0 to T+1. This move is mainly aimed at preventing some investors from making use of margin trading and trading in a disguised manner, increasing the abnormal fluctuation of stock prices and affecting the stable operation of the market.

From T+0 to T+1

Yesterday evening, the Shanghai and Shenzhen Stock Exchange issued a notice to amend the securities lending business, and revised the fifteenth rules of the Shanghai stock exchange's detailed rules for the implementation of the margin trading (2015 Revision).

The revised rule is that after the sale of the customer's margin, the securities can be repaid to the members through the purchase of coupons or coupons from the next trading day.

Sun Jianbo, chief strategist of galaxy securities, said

The change from T+0 to T+1 means that investors in securities trading can avoid the ups and downs of the day, and now can only hide for second days. This is equivalent to increasing the risk of margin trading, reducing high-frequency trading, and shorting the power will also weaken.

It is understood that the margin trading volume is relatively small, and concentrated in 300ETF, 50ETF and other ETF varieties, investors can sell ETF through margin trading, buy stocks, convert ETF coupons and other methods to carry out intra day cross variety arbitrage.

Huaxi Securities analysis suggests that the modification of the securities lending rules will help stabilize the market.

Market participants also say that the implementation of the T+1 rules for margin trading helps to maintain market stability and steady and healthy development of margin trading, and it will not affect the normal development of margin trading.

For the fundamental purpose of the amendment rules, the Shenzhen Stock Exchange said the move was mainly aimed at preventing some investors from making use of margin trading to carry out intra day trading in a disguised form, increasing abnormal fluctuations in stock prices and affecting the stable operation of the market.

Analysts said that the Shanghai and Shenzhen two cities will modify the short selling rules.

Changed to T+1 coupons, mainly because the previous 34 accounts were deliberately fooled by the stock price, thereby being hit by pressure from the SFC, limiting investors' excessive speculation and shorting.

A number of securities companies suspend securities lending business

With the revision of the securities lending rules, a number of brokerages also said today that they would suspend trading from now on.

Citic securities issued a notice today in its client software, saying that in order to adapt to the urgent revision of the exchange financing and securities trading rules and control the business risks, the company suspended the trading of securities trading from now on.

Subsequently, including Guoxin Securities,

Securities companies, including Huatai Securities, announced the suspension of the securities lending business.

"Suspension of margin trading is a helpless choice. The rule of T+0 is changed to T+1, and the risk of brokers will be magnified at once. Risk aversion must also be in line with regulation."

For the impact of the brokerage business, Xu Fei, a non silver analyst at national gold securities, believes that the change of the margin trading to T+1 is limited.

1 the main purpose of the revision is to maintain market order and curb excessive market shorting, and promote the smooth development of the two financial businesses.

"Margin trading accounts for a relatively low proportion. Many brokerages have suspended the securities lending business, which has little impact on the brokerage business revenue of brokerages.

The average daily margin of margin trading in July was 3 billion 100 million yuan, accounting for 0.2% of the average daily balance of the two financial pactions, and the average number of shares sold on the margin was 780 million shares. After the revision of the securities trading rules, it is expected that the impact on brokers' brokerage revenues will be 2-3%.

He pointed out that after the implementation of margin trading T+1, the interest income of brokerages will be raised, and the lending rate of securities dealers is estimated to be around 9%.

Zhu Zhiyong, an analyst with ajian securities, believes that the stock market is still in the stage of policy stability. In the early stage, the risk of overvalued stocks caused by highly leveraged funds has been released to a greater extent. However, how to draw lessons, improve supervision and trading system, prevent risks from re exploding, and other documents making and promulgation are lagging behind. Investors' confidence in stocks is still insufficient.