Reading The Stock Market In Lao Sha: China'S Securities Market Has A Long Way To Go

CITIC Securities high level suspected of insider trading continues to ferment.

After Xu Gang and other three core members of the company were asked by the public security organs to assist in the investigation, general manager of CITIC Securities, Cheng Po Ming, also entered the investigation list.

So far, half of the eight executive members of CITIC Securities have been investigated, and the ranks of those involved have been further upgraded.

The information released by the Ministry of human resources and social security on the 15 day showed that the State Council appointed Li Chao as vice chairman of the China Securities Regulatory Commission to remove the post of deputy director of the State Administration of foreign exchange.

Zhuang Xin retired to the age of one year and no longer served as vice chairman of the China Securities Regulatory Commission.

All kinds of signs show that as the continuation of the "big cleaning" operation on the OTC, the regulatory layer's cleaning and rectifying requirements for all kinds of information technology systems for securities companies are constantly clear and stricter, and the cleaning operations of the securities companies are further escalating.

Reporters learned exclusively from the insiders of the relevant securities firms on the afternoon of 15, and the documents from the regulatory authorities revealed that the clean-up and rectification of the external information technology system by the securities companies was no longer restricted to the OTC capital allocation. All the non real name accounts connected by various information technology systems of the securities company were faced with liquidation.

The document from the securities regulatory agency of the Securities Regulatory Commission of the securities and Futures Commission answered some doubts about the recent market clearing of the OTC assets.

In addition, the securities companies should strictly implement the requirements of the real name system for securities accounts, and shall not facilitate the development of illegal securities business activities by any institution or individual through the external access information system (including online securities trading interface).

In the first two trading days of this week, the Shanghai Composite Index fell 2.67% and 3.52%, respectively, after the rise of index stocks, barely above 3000.

Some analysts believe that the liquidation of the umbrella trust in recent times is one of the reasons leading to the decline of the index.

For this week's market decline, some analysts believe that the recent liquidation of umbrella trusts is one of the important incentives.

What makes many organizations nervous is that the above cleaning work is required to be completed by September 30th, and a larger stock company should not be completed by the end of October.

In accordance with the requirements of the regulatory authorities, many securities companies have sent letters of cleanup to the trust companies and other agencies.

Qilu Securities was the most responsive to clearing the off-site assets. In August 31st, it sent a letter to the trust company to cooperate with it, requiring the trust company to properly handle the relevant accounts and assets in the same day, and take measures such as "restricted capital pfer" and "restricted purchase" for overdue accounts.

Subsequently, China Shipping securities, bank securities, Southwest Securities, Huatai Securities, Guoxin Securities and other brokerages have followed up.

It is worth mentioning that there are still securities companies waiting to see.

An insider of a trust company in Beijing, according to a reporter, said that his company had business cooperation with more than 10 brokerages. At present, 3 brokers have been asked to clean up the letter. It should be because different brokerages are advancing in different times, and the understanding of whether a single trust needs to be cleaned is different.

Data showed that as of September 11th, 3255 funds were cleared, accounting for 60.85% of all suspected OTC funds.

There are many different opinions about the scale of the scale.

Some market participants estimate that there will be 700 billion yuan at peak time, and after several rounds of deleveraging, there will be 200 billion yuan.

Authoritative data from the securities and Futures Commission show that as of September 11th, 2094 accounts had not yet been cleared, and the stock market value was about 187 billion 627 million yuan.

As of September 14th, the financing balance of Shanghai and Shenzhen two cities was 953 billion 398 million yuan, and remained stable above 950 billion yuan.

This Friday will usher in the delivery date of the September contract. Investors are beginning to worry about whether there will be a "magic spell" on delivery day. In this regard, market participants believe that, due to the policy influence of excessive speculation by the central bank, speculative funds are limited by the number of open positions and can not be bought in a big way. The hedging funds and the arbitrage funds will not be able to find their rivals for the month. Therefore, the volume and positions of the index in the past two weeks have been greatly reduced, the fluctuation has gradually decreased, the basis has been gradually converging, and the probability of the delivery day to pass smoothly is greater.

The price difference structure also determines the high cost of changing the month.

The futures market is not much instructive at present, mostly following the spot trend.

Barth said China's banking sector could suffer huge losses, which could affect the whole country.

"Those who are concerned about China," he said.

People who fluctuate do not really notice what the real problem is.

In my view, the real problem is the loan of the banking system.

Barth said that since 2007, China's

It has increased by about 400%, and now it has reached about US $31 trillion, and the country's gross domestic product (GDP) is only 10 trillion US dollars.

He said that when banks are so aggressive and rapid expansion, there are bound to be some losses.

What's frightening is that 10% of assets in the banking industry will be lost to $3 trillion.

Such a loss will force China to use most of its foreign exchange reserves (currently about $3 trillion and 600 billion) and sell bonds to recapitalise the banking system.