Feasibility Study Report On Securities Credit Transaction In China

Most important influences of the Margin financing and securities lending transaction to the market are the leverage transation and the short sale system..On July 1,2006,CSRC officially issued " The regulations of Margin financing and securities lending transaction of Security Company on trial basis",which would come into effect on August 1.In August,2006,CSRC,Shanghai Stock Exchange,Shenzhen Stock Exchange had issued the "Detailed Rules for the Implementation of Margin Financing and Securities Lending Transactions on Trial Basis" successively.So the Margin Financing and Securities Lending Transactions would start up in the near future.The operation and management patterns in the Margin Financing and Securities Lending Transactions of oversea would be used for reference in the article,to research the management pattern of our country.The case of the blue print of one security company in Margin Financing and Securities Lending Transactions are choused for demonstration analysis and research as well.The paper based on securities credit transaction operations management reference model,taking China's securities companies and securities market development-based,exploring the feasibility of securities credit transaction, constructing securities credit transaction processes specific structure.Three key processes,including financing securities accounts system,the exchange system and the guarantee fund system,are analyzed to determind the pattern of Margin Financing and Securities Lending Transactions in this article.Three system construction and risk control plans are bring forward as well.According to CSRC's regulations of Risk control and management index which based on net capital standards and so as the business risk,the perfection of risk control system in Margin Financing and Securities Lending Transactions is brought forward.The overall risks of Margin Financing and Securities Lending Transactions are described and the solution methods are proposed, while considering with the actual practices of security companies.