China Securities Credit Trading System Research

Securities credit trading system is widely adopted in the international securities market transactions. As the securities law amendments to the split share structure and capital market innovation, the implementation of securities credit trading system to the development of China's securities market is very urgent and necessary.The paper has to three parts. The first chapter is about margin trading theory. This chapter mainly talks about the basic legal system theory, and analyze the denotation and connotation of the system, the margin of business process, basic principles and profit-making mode, the function and the risk of the system in detail. To illustrate the margin business itself is not terrible, the necessary regulatory and risk control of margin trading are the most important thing to consider by the regulatory.The second chapter is about the legal analysis of the margin trading. This chapter mainly analyzes the legal relationship between participants during the business process in-depth. Firstly, this chapter analyzes the main participants of margin trading business in general as investors, securities companies, securities financial companies. Then, this chapter focuses on analyzing the first level of credit legal relationship between securities companies and investors. It involves acting legal relationship, lending legal relationship, guarantee of legal relationship.The third chapter is assumption of margin transaction system. This is the key part of this paper, also the ultimate goal of writing. Firstly it analyzes the necessity of the introducing of the margin trading and the conditions which we have been established and the necessary legal conditions for introducing the system, all of these show that our margin system is the inevitable outcome of the development of Chinese securities. Because of the great risk of margin transaction, such an effective stock market and the credit system is not perfect in China in this business, the key link of the system is the risk control. Therefore, this chapter focuses on analyzing the relevant system of risk control of the margin transaction. Finally this chapter analyzes the supervisory system of margin transaction.